Disclaimer:

The contents of this presentation are only representing the opinion and personal insights of the

presenter.

Fujairah Oil Storage and Trading Hub

Opportunities & Challenges

Platts Bunkering & Storage Asia Conference

Nizamuddin Noorali

Fujairah is one of the seven Emirates of UAE.

Fujairah lies on Oman Gulf and the Indian Ocean in the Eastern part of Arabian

Peninsula with a coast line of 90 Km.

Population of around 200,000 people.

Geography puts Fujairah at the cross roads of Europe, Africa & Asia.

Value of Foreign trade through Fujairah amounted to around AED 20 billion

and more than 52% of that was through free zone companies.

Fujairah is emerging as a truly global oil trading, storage and bunkering hub.

Largest Bunkering Hub in the region.

Fujairah

Straits of Hormuz

The straits of Hormuz is only 37 km

wide.

Consist of two lanes able to

accommodate oil tankers entering

and exiting the Gulf Ports.

Every hour, an average of 30

vessels transit the straits carrying

40% of the worlds Crude Oil Supply

Fujairah Strategic Location

OPEC Oil Production Allocation:

SAUDI ARABIA 8,700,000 Barrels per Day

IRAN 3,700,000 Barrels per Day

IRAQ 2,800,000 Barrels per Day

UAE 2,200,000 Barrels per Day

KUWAIT 2,000,000 Barrels per Day

Qatar 650,000 Barrels per Day

Proximity to Major Oil Procedures

Daily 120 Tankers passing strait of Hormuz

in both directions

International Shipping Passage

a) Oil Storage Terminals

b) State of art Terminals-SAFT model

c) Port of Fujairah

d) Oil & Gas Projects

e) Associated Services

Opportunities

Oil Storage Terminals

Oil Storage Terminals

Fujairah Terminals and Expansion

Independent Storage facility.

352,000 m3 current operational capacity with plan to expand to 1.5 million m3.

Designed for Class I products

Storage of crude oil, condensate, naphtha, gasoline, gasoil, diesel, jet fuel,

kerosene, cutter stock and fuel oil.

All tanks have Internal floating roofs ( IFRs).

Jet mixers in all tanks for in tank blending.

Dedicated lines from each tank to the terminal manifold.

On to vessel blending.

SOCAR AURORA FUJAIRAH TERMINAL

In line additivation of product during loading or discharge.

Internal pigging of all lines within the terminal and to the port.

Fully coated tanks for Jet fuel.

Efficient thermal heating system.

Truck loading facility for simultaneous loading.

Eductors technology to achieve homogenous product blend.

SOCAR AURORA FUJAIRAH TERMINAL

11

Port of Fujairah

Berth 2

Berth 3 Berth 1

MM1

Port of Fujairah Oil Terminal Berthing facilities:

1. Present berths

Oil Terminal 1 “OT1”, Berth1, 2 & 3

Oil Terminal 2 “OT2” – Phase 1, Berth 4, 5, 6 & 7

Oil Terminal 2 “OT2” – Phase 2, Berth 8 & 9

VLCC commissioned in August 2016

2. Future berths ( Master Plan)

3.1 Oil Terminal 3 “OT3” (Small Vessel / Bunker Barges 3A and 3B)

3.2 Oil Terminal 2 “OT2” – Phase 3, (Berth10 – up to 21)

3.3 Provision for building second VLCC

Port of Fujairah

Container

Initially port was a container transshipment to inner Gulf & subcontinent.

Container terminal spread over 200,000 sq m.

Franchised to Abu Dhabi Ports

General & Project cargoes

Logical to accommodate general and project cargoes due to massive

construction activity.

Bulk Cargo- Mainly Aggregate

Aggregate berths are installed with 2 bulk loaders having combined capacity of

6000 tons per hour.

Quality aggregate shipped to GCC for building projects-peaked to 18 mln tons.

Strategic Grain Reserve

20 concrete Silos with a storage capacity of 275,000 MT.

Sufficient grain reserve for the UAE and transfer hub for other countries in the

Arabian Gulf

Port of Fujairah

Maritime Supply through Fujairah Anchorage. Anchorage area safety & security

with number of vessels calling are more than 17,000 vessel calls.

Oil berths for loading/ discharging vessels.

Port of Fujairah

350 Km pipeline from Habshan to Fujairah –Real Game changer

IPIC completed ADCOP project.

It has main and intermediate pumping station to pump Crude to Fujairah.

ADCO terminal having 8 Storage Tanks of one Million barrel each.

ADCO terminal has three Single Point Mooring buoys ( SPMs) for

VLCCs with 320,000 DWT.

12 ship loading pumps for a loading capacity of 80,000 bbls/ hr for each SPM.

Major oil companies have own or rented storage terminals.

Oil & Gas Projects

IPIC refinery

Processing capacity of 200,000 bbls per day

Being constructed by IPIC.

Process a mixture of UAE crude i.e. Murban, Upper Zakum and other

regional crude oils.

Refinery will have its own power generation capability.

Chemical storage

Bitumen Refinery

Crude oil storage

Crude oil pipeline connectivity to the port

Oil & Gas Project

Bunkering companies

Lube Oil Suppliers

Slop collecting companies

Sludge treating facility

Medical services

Shipping agencies

Oil testing labs

Marine Survey companies

Tank cleaning companies

Technical Service companies

Associated Services

1) Pricing Center

2) Land Availability

3) Fire fighting capability

Challenges

1) Fujairah all poised to become Pricing Center for the region

2) October 2016 Platts started reporting prices on FoB Fujairah basis

for gasoline, gasoil, Jet fuel and fuel oil.

3) The Terminals Inventory data documented by FOIZ is also published

on a weekly basis.

4) Argus has also started publishing fuel oil 380cst fob Fujairah barge

market from March 2017.

5) The above measures though in nascent stage will provide liquidity

and transparency to the market players.

Pricing Center

Availability of land is scarce resulting in hike in lease rental rates. Mountains demolition is an uphill task. More opportunities to existing players to expand rather than new players to start from scratch. To respond Fujairah Northern Land Reclamation Projects (FNLRP) Phase 1 & 2 are under way

Land Availability

1) Oil Terminals build their own fire fighting system and that is

considered sufficient for fighting fire for 2 to 2.5 hours.

2) Continuous subsequent water stream is required for safe control

till the fire can be extinguished.

3) POF has taken pro active measures to construct 2 common sea

water intake pit.

4) This will assist in constructing a sea water back up supply

distribution network within whole FOIZ.

5) Terminals are also working on mutual aid and SAFT has taken

measures in this regard.

Fire Fighting Capability

Thank you for your kind attention.