State-owned Abu Dhabi National Oil Company (Adnoc) has awarded contracts worth $245 million to upgrade two main oil lines and terminal crude receiving facilities in Abu Dhabi, the media reported.
The contracts were awarded by Adnoc to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi and Abu Dhabi-based Target Engineering Construction.
Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate told the media, “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.”
The Engineering, Procurement, and Construction (EPC) contract awarded to China Petroleum Pipeline Engineering Company is valued at approximately $135 million, and once developed it will increase the capacity of the pipelines by over 30 percent.
The contract is for a period of 30 months and will see over 45 percent of the award value flow back into the UAE’s economy under ADNOC’s ICV program.
Last month, Adnoc said that its project to upgrade the Ruwais refinery is on track and will be completed by 2022.