The Abu Dhabi National Oil Company (ADNOC) announced today that it is building the world’s largest single underground project ever awarded for oil storage, with a capacity of 42 million barrels of crude oil, in the Emirate of Fujairah on the eastern coast of the United Arab Emirates.

An Engineering, Procurement and Construction (EPC) contract has been awarded to South Korea’s SK Engineering and Construction Co. Ltd (SKEC) to construct the three underground storage caverns, each with a capacity of 14 million barrels, deep below ground level. The EPC contract is the largest for a single project award for underground crude oil storage in the world and is valued at AED 4.4 billion (US$ 1.21 billion) with approximately 50 per cent of the contract spend feeding back into the UAE economy through ADNOC’s In-Country Value program. 

The ADNOC Fujairah Underground Storage will strengthen the UAE's position as a reliable supplier of crude oil as well as give ADNOC greater flexibility, allowing it to manage and optimize its delivery schedule and support its broader move into trading. It will also enhance its position as one of the key trading and supply partners in Fujairah’s growth as a global oil and products storage and trading hub.

In celebration of the cooperation between the UAE and South Korea, an agreement to announce the mega-project was signed in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and President Moon Jae-in, President of the Republic of Korea, at the Blue House, in Seoul. The agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Jae Hyun Ahn, SKEC President & CEO. 
 
H.E. Dr Al Jaber said: 
“Construction of the world’s largest single underground project ever awarded for oil storage will enhance the UAE’s energy security, in line with the wise guidance of the country’s leadership. Importantly, developing this strategic oil storage mega facility in Fujairah will also support and further enable our broader trading ambitions, strengthening our ability to respond efficiently and competitively to the needs of our customers, while also providing ADNOC with greater flexibility to proactively respond to market needs and commercial opportunities. 

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