Reuters reported that Abu Dhabi's government owned IPIC is talking to 2 international companies that could operate and part own the Fujairah oil refinery project.

Mr Khadem Al Qubaisi MD of IPIC said that "We are in touch with 2 well known companies to operate and own a stake in the refinery."

He said that IPIC would make a decision on whether to proceed with the refinery 2010. He added that that IPIC saw the project as potentially viable despite a fall in oil demand this year and last. In the longer term, demand would grow.

Mr Qubaisi said that "This may be a tough year but maybe four years from now it would not be negative.”

He said that the refinery would likely have capacity to process between 150,000 barrels per day and 200,000 barrels per day. He added that initial plans were for a giant refinery of 500,000 barrels per day but IPIC scaled that down to save money. The estimated cost of the plant stood at between USD 4 billion and USD 5 billion but was falling.

US company ConocoPhillips was initially involved in the project but pulled out in 2007 as costs rose

(Sourced from Reuters)