Project a joint venture with Finland's Neste Oil and Austrian OMV, construction to begin Q2 next year.
Abu Dhabi Oil Refining Company (Takreer), Finland's Neste Oil and Austrian OMV are planning a plant to make base oil, the main element in lubricants, in Abu Dhabi, Neste Oil said on Monday.
The joint venture, which plans to build the plant with an annual capacity of 500,000 tonnes and to capitalise on growing demand for high-performance base oils, would be 60% owned by Takreer, 20% by Neste Oil and 20% by OMV, Neste Oil said in a statement.
Takreer is a unit of the state-run Abu Dhabi National Oil Company (Adnoc).
Takreer's hydrocracker would supply the feedstock for the base oil unit.
Planning of the project would start in the second quarter of 2008 at the latest, Neste Oil said, with an investment decision expected later based on the cost estimates done during planning.
Neste Oil also said its earlier project to hike base oil production in Bahrain was also progressing.