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. Last Updated: 07/27/2016

$13Bln Chelyabinsk Refinery Planned

Quality Energy Petro Holding International, owned by a member of Abu Dhabi's al-Otaiba family, plans to build a $13 billion oil refinery with the government of Chelyabinsk in the United Arab Emirates, the company's chairman said Tuesday.

The 500,000-barrel-per-day refinery will be a joint venture with the government of the Chelyabinsk region, in which Quality Energy plans to invest $100 billion by 2012, Adil al-Otaiba said.

"The Chelyabinsk government is negotiating with the Iranian government to provide the crude for the U.A.E. refinery," he said in an interview.

Quality Energy is in talks with the rulers of one of the country's northern emirates about building the plant, he said, without giving a date for the start of construction. Quality Energy will begin construction on a $4.5 billion refinery in Chelyabinsk in 2009, once the Chelyabinsk government has concluded talks with oil companies to secure 1 million tons of crude per year.