The Abu Dhabi National Oil Company (ADNOC), has announced contracts worth $245m to upgrade two main oil lines (MOLs) and Jebel Dhanna Terminal in Abu Dhabi.
The two engineering, procurement, and construction (EPC) contracts have been awarded by ADNOC Onshore, a subsidiary of ADNOC.
A $135m contract has been secured by China Petroleum Pipeline Engineering Company Limited – Abu Dhabi, while Abu Dhabi-based Target Engineering Construction has won the other contract worth $110m.
ADNOC’s upstream directorate executive director Yaser Saeed Almazrouei said: “The EPC contracts awarded by ADNOC Onshore will increase the capacity of the two main oil lines and upgrade the Jebel Dhanna Terminal to enable it to receive Upper Zakum and Non-System crude for delivery to the Ruwais Refinery West 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.
“Crucially, a significant portion of the awards will flow back into the UAE’s economy under ADNOC’s ICV program, reinforcing our commitment to maximize value for the nation as we create a more profitable upstream business and deliver our 2030 strategy.”
Details of the EPC contracts for MOLs and terminal upgrade
Under its contract, China Petroleum Pipeline Engineering Company Limited – Abu Dhabi will replace two MOLs.
The two MOLs transport ADNOC’s Murban crude oil from its oilfields at Bab (BAB), Bu Hasa (BUH), North East Bab (NEB), and South East (SE) to Jebel Dhanna terminal.
The replacement project, which is expected to be completed in 30 months, is aimed at increasing the capacity of the pipelines by more than 30%.
The scope of the contract awarded to Target Engineering Construction includes upgrading the crude receiving facilities at the Jebel Dhanna Terminal. The terminal contract is expected to be completed in 20 months.
The upgrade is expected to enable ADNOC to utilize parts of the terminal’s existing facilities to import Upper Zakum crude oil from offshore and Non-System (NS) crude, for delivery to the new Ruwais Refinery West (RRW) project.
In August, the company has announced completing 73% of its $3.5bn Crude Flexibility Project (CFP) to upgrade Ruwais refinery.
