Booming Fujairah established a zone for petroleum industry through a special Emiri decree on Wednesday, Arabnews reports.
The new entity, Fujairah Zone for Petroleum Industry (FOZ), will be responsible for emirate’s all petroleum affairs including petroleum products, hydro-carbon industries, oil and gas industry along with providing infrastructure and facilities, buildings, and administrative services to investors.
FOZ will include 136 tanks with a storage capacity of three million cubic meters, and on completion by the end of year 2012, it would reach to 262 tanks with a capacity of seven million cubic meters for the storage and export of crude oil and petroleum products.
Fujairah, a strategic location between Asia and the Atlantic Basin, already has surpassed Rotterdam as the world’s second-largest bunkering port after Singapore.
The port of Fujairah, one of the busiest in the world, has become a strategic site to store crude oil in the Middle East because of its location just outside the bottleneck of the Strait of Hormuz, a potentially risky shipment route.
In addition, a new oil pipeline from Abu Dhabi will make Fujairah port a strategic storage and export hub for the country’s crude.
Abu Dhabi-owned International Petroleum Investment Company (IPIC), had announced $3 billion refinery in Fujairah last month.
The decree, issued by Sheikh Hamad bin Mohammed Al Sharqi, supreme council member and ruler of Fujairah, also stipulated that FOZ shall set up petroleum strategies for investment and the organization of petroleum and hydrocarbon industries, refineries and transport, storage and construction processes.
State news agency WAM said FOZ also will organize transactions and activities relating to the issuance of approvals and licenses to companies, institutions and bodies operating in the region.
According to decree the FOZ will strengthen role of the private sector and provide support to companies and petroleum organizations and institutions, research centers and technological development in the field of petroleum industry.
It will also facilitate the administrative procedures for institutions and companies in the region to the other official bodies.
Asia’s largest oil company PetroChina and Unipec are seeking to get a foothold in the region and have looked into building or leasing oil-storage facilities in Fujairah last year.
There were unconfirmed reports that PetroChina, may build or lease between 500,000 and 600,000 cubic meters of storage for oil products with a local partner in Fujairah.
The new entity, Fujairah Zone for Petroleum Industry (FOZ), will be responsible for emirate’s all petroleum affairs including petroleum products, hydro-carbon industries, oil and gas industry along with providing infrastructure and facilities, buildings, and administrative services to investors.
FOZ will include 136 tanks with a storage capacity of three million cubic meters, and on completion by the end of year 2012, it would reach to 262 tanks with a capacity of seven million cubic meters for the storage and export of crude oil and petroleum products.
Fujairah, a strategic location between Asia and the Atlantic Basin, already has surpassed Rotterdam as the world’s second-largest bunkering port after Singapore.
The port of Fujairah, one of the busiest in the world, has become a strategic site to store crude oil in the Middle East because of its location just outside the bottleneck of the Strait of Hormuz, a potentially risky shipment route.
In addition, a new oil pipeline from Abu Dhabi will make Fujairah port a strategic storage and export hub for the country’s crude.
Abu Dhabi-owned International Petroleum Investment Company (IPIC), had announced $3 billion refinery in Fujairah last month.
The decree, issued by Sheikh Hamad bin Mohammed Al Sharqi, supreme council member and ruler of Fujairah, also stipulated that FOZ shall set up petroleum strategies for investment and the organization of petroleum and hydrocarbon industries, refineries and transport, storage and construction processes.
State news agency WAM said FOZ also will organize transactions and activities relating to the issuance of approvals and licenses to companies, institutions and bodies operating in the region.
According to decree the FOZ will strengthen role of the private sector and provide support to companies and petroleum organizations and institutions, research centers and technological development in the field of petroleum industry.
It will also facilitate the administrative procedures for institutions and companies in the region to the other official bodies.
Asia’s largest oil company PetroChina and Unipec are seeking to get a foothold in the region and have looked into building or leasing oil-storage facilities in Fujairah last year.
There were unconfirmed reports that PetroChina, may build or lease between 500,000 and 600,000 cubic meters of storage for oil products with a local partner in Fujairah.
