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Underground Oil Storage Cavern Project
This project involves construction of an underground cavern in Fujairah. The project is about Construction of an underground cavern for storage of oil. The facility for Mandous Offshore Oilfield, will cater to rising demands for FujairahÂ’s oil storage capacity amid crude stockpiling at lower prices The project involves the construction of three crude oil storage caverns of 20m x 25m each with the total capacity is 42 million barrels. The project scope includes the following: 1. Construction of water tunnels (7m and 5m) in a D-shape 2. Construction of boreholes and access tunnels 3. Construction of compressor units 4. Construction of access roads 5. The project plans to build in Fujairah what it calls the worldÂ’s largest single underground project ever awarded for oil storage. It let an engineering, procurement, and construction contractfor three underground storage caverns with capacities of 14 million bbl each. The EPC contract is the largest for a single project award for underground crude oil storage in the world and is valued with approximately 50 percent of the contract spend feeding back into the UAE economy through In-Country Value program. Fujairah Underground Storage will strengthen the UAE's position as a reliable supplier of crude oil. Construction of the worldÂ’s largest single underground project ever awarded for oil storage will enhance the UAEÂ’s energy security. Installation of temperature control machinery 6. The facility is also expected to improve position as a major trading and supply partner in FujairahÂ’s growth as a global oil and products storage and trading hub. Installation of safety systems Three companies have submitted the technical bids. Hiring has been appointed as the front-end engineering design consultant. The development is currently in tendering stage and is expected to be completed by end of 2019.
