The ADNOC logo. (File photo: Reuters)
Abu Dhabi National Oil Company (ADNOC) announced that it would be spend around $245 million to upgrade two oil lines and the crude receiving facilities at the Jebel Dhanna Terminal in Abu Dhabi, the company said in a statement Wednesday.
The two engineering, procurement, and construction (EPC) contracts for the work were awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi and Abu Dhabi-based Target Engineering Construction.
“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,” Yaser Saeed Almazrouei, executive director of ADNOC’s Upstream Directorate, said in the statement.
For all the latest headlines follow our Google News channel online or via the app
The contract with China Petroleum Pipeline Engineering Company is valued at around $135 million, while the contract with Target Engineering Construction is valued at around $110 million. ADNOC estimates that over 50 percent of the value of the deals will flow back into the UAE’s economy.
“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,” Almazrouei explained.
The upgrade of Jebel Dhanna will allow ADNOC more flexibility with the types of crude it can handle, the company said. ADNOC expects the upgrade to be completed in 20 months.
Meanwhile, the pipeline upgrade is expected to be completed in 30 months, and will increase the capacity of the two pipelines in question by 30 percent.
Read more:
Kuwait trims $3 bln from budget following low oil prices, coronavirus: Lawmaker
As coronavirus cases rise, oil falls below $42
Saudi Arabia cuts price for oil amid fears of struggling coronavirus demand recovery
