Adnoc is planning to build a refinery in Abu Dhabi with capacity of at least 300,000 barrels per day, the company’s chief executive said.

Yousef Omair Bin Yousef said basic studies are now being carried out on the refinery, which will use light crude produced by Adnoc.
But he said there is no time frame as of yet for the project, which will produce products mainly for the export market.
The CEO also said Adnoc is pushing ahead with plans to develop Abu Dhabi’s sour gas reserves in cooperation with foreign oil firms.
He said more than 15 firms have shown an interest.
“The companies are in the process of presenting their plans to Adnoc. We have already started the process with them,” Yousef said.
He added that the gas would be used in industry, for power generation and oil field reinjection.
Adnoc joins others in the global energy industry who are making ambitious plans to build refineries amid a severe shortage in global capacity.
Meanwhile, ExxonMobil Corp hopes to increase oil recovery rates by at least 50 per cent at the Upper Zakum oilfield, a senior official said.
The UAE and ExxonMobil signed a final deal in March for the US major to take a 28 per cent stake in Abu Dhabi’s offshore field, among the world’s largest oilfields. Japan Oil Development Co holds a 12 per cent interest.
“There is a working team at Upper Zakum right now trying to figure out what the best way is to achieve high recovery rates,” said Rick Vierbuchen, vice president for the Caspian and Middle East region at ExxonMobil Exploration Company.
“We are all quiet hopeful that Upper Zakum will bring very high recoveries in excess of 50 per cent,” he told an energy conference in Abu Dhabi.
Adnoc has said it aims to increase production from the field by 750,000 barrels per day (bpd). Upper Zakum’s current output capacity is around 550,000 bpd.
The planned increase is part of the Gulf Arab state’s policy to raise its production capacity to around 3.5 million bpd by 2011 from around 2.7 million bpd.
Meanwhile, Abu Dhabi plans to invest $150 billion over the next five years to develop its aluminium, steel, and petrochemical industries, the chairman of the emirate’s planning and economy department said.
“These initiatives are targeted at attracting investment and creating greater volume of international trade,” Sheikh Hamed bin Zayed al Nahyan chairman of the Abu Dhabi planning and economy department said.
Abu Dhabi-owned Mubadala Development Company and General Holding Corporation will make the investments, some of which have already been announced.
Adnoc is investing $20 billion in an aeromatics polyethylene and polypropylene complex in Ruwais, he said.
The emirate will set up an oil refinery and aluminium smelter in Ruwais and is building a $6 billion joint venture with Dubai Aluminium Company in Taweelah, Sheikh Hamed said. Abu Dhabi will also invest in a steel plant.
Abu Dhabi, which has more than 90 per cent of the UAE’s oil reserves, is keen to wean its economy off energy exports and lure foreign capital to emulate the success of neighbouring Dubai, the Gulf region’s trade and tourism hub.