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ADNOC Awards $245MM in Contracts

ADNOC Onshore has awarded two engineering, procurement and construction (EPC) contracts to upgrade two main oil lines (MOLs) and terminal crude receiving facilities in Abu Dhabi, parent company Abu Dhabi National Oil Co. (ADNOC) reported Wednesday.

The EPC contracts, together worth approximately 899.9 million UAE dirhams (US$245 million), went to China Petroleum Pipeline Engineering Co. Ltd. – Abu Dhabi and Abu Dhabi-based Target Engineering Construction Co. L.L.C., ADNOC noted in a written statement emailed to Rigzone.

Yaser Saeed Almazrouei, executive director of ADNOC’s Upstream Directorate, stated the EPC contracts will increase the MOLs’ capacity and upgrade the Jebel Dhanna Terminal so that it can receive Upper Zakum (UZ) and Non-System (NS) crudes for delivery to the Ruwais Refinery West (RRW) project.

“The awards follow a very competitive tender process and highlight how ADNOC is making smart investments to optimize performance and unlock greater value from our assets,” Almazrouei commented. “Crucially, a significant portion of the awards will flow back into the UAE’s economy under ADNOC’s ICV (In-Country Value) program, reinforcing our commitment to maximize value for the nation as we create a more profitable upstream business and deliver our 2023 strategy.”

China Petroleum Pipeline Engineering’s approximately 496.8 million-dirham (US$135 million) contract calls on the firm to replace the two MOLs that transport ADNOC’s premium grade Murban crude oil from its Bab (BAB), Bu Hasa (BUH), North East Bab (NEB) and South East (SE) oilfields to the Jebel Dhanna facility, ADNOC stated. The pipeline’s capacity will consequently increase by more than 30 percent, the firm added. ADNOC also noted it expects the project to take 30 months to complete.

According to ADNOC, crude receiving facility upgrades performed at Jebel Dhanna under Target Engineering’s roughly 403.7 million-dirham (US$110 million) EPC contract will enable existing terminal facilities to import UZ crude oil from offshore and NS crudes. The crudes will be deliverable to the new RRW project, located 7.5 miles (12 kilometers) east of the terminal, pointed out ADNOC.

ADNOC stated that it expects the Jebel Dhanna terminal project to last 20 months.

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