The project will see the installation of 70,000 barrels per stream day (BPSD) of liquefied petroleum gas/naphtha hydrotreater and a 36,000 BPSD crude catalytic reformer and an ancillary processing unit.
The upgrade will enable the company to produce its own gasoline for the first time besides various other upgrades in its oil and gas production.
The new facilities will also operate the plant at full capacity using sour condensates. Mechanical completion of the refinery enhancement is due by the end of 2007.
Hussain Sultan, group chief executive and board member of ENOC, said: "As a leading petroleum player in the UAE, we demonstrate with this expansion both our leadership position and commitment to being the reliable and responsible energy partner of choice."
He also mentioned that there is also a third upgrade phase in the pipeline.
Dubai Islamic Bank has been mandated to arrange a $500 million Islamic facility under Al Ijarah structure, with a financial close scheduled for the first quarter of 2006.
Dr Mohammed Khalfan bin Kharbash, UAE Minister of State for Financial and Industrial Affairs and chairman of Dubai Islamic Bank, said "ENOC's decision to opt for Sukuk Al ljarah reflects the growing importance of Islamic funding in the marketplace. Capital raising in the energy sector is perhaps the most critical element of any long term planning cycle, and I would like to express our delight that ENOC found an Islamic solution as opposed to conventional capital raising methods."
He further underlined the importance of the strategic relationship of the two corporations.
Engineering, procurement and construction management of the project will be undertaken by UK-based Foster Wheeler Energy.
Steve Davies, chairman and CEO of Foster Wheeler Energy, said: "We have been working with EPCL (the refining arm of ENOC) on this upgrade project for some time. The award of the contract positions us uniquely to combine our refining expertise and our detailed knowledge of the existing facility and planned upgrade to deliver a world-class facility for our client."
Sultan further explained that ENOC refines crude oil from across the region. He named Iran as one of the biggest suppliers besides Qatar, Saudi Arabia and Abu Dhabi.ENOC export markets reach into Africa and the Far East. He then said that it was also increasingly important to boost the number of filling stations in the United Arab Emirates to meet growing demand.
When we choose to look away for good, we are as complicit as those at the helm of this atrocity
Over 100 people in Lebanon have been reported killed during the hostilities started on October 7