ADNOC awards $245m contracts to upgrade Jebel Dhanna terminal in Abu Dhabi

ADNOC Onshore, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), said on Wednesday that it had awarded two Engineering, Procurement, and Construction (EPC) contracts to upgrade two main oil lines and crude receiving facilities at the Jebel Dhanna terminal in Abu Dhabi.

The two contracts, cumulatively valued at $245m were awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi and Abu Dhabi-based Target Engineering Construction Co. LLC.

The contract awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi, and expected to be completed in 30 months, is valued at approximately $135m.

#ADNOC invests $245 Million to upgrade main oil lines and Jebel Dhanna Terminal; Over 50% of the award value will flow back into the UAE’s economy under ADNOC’s ICV program.

Read more: https://t.co/fhBmyVRL94 pic.twitter.com/I7QOwflf5u

— ADNOC Group (@AdnocGroup) September 9, 2020

It involves the replacing two main oil lines which transport ADNOC’s premium grade Murban crude oil from its oilfields at Bab, Bu Hasa, North East Bab, and South East to Jebel Dhanna terminal, increasing the capacity of the pipelines by over 30 per cent.

The contract awarded to Target Engineering Construction meanwhile is expected to be completed in 20 months and valued at approximately $110m.

It involves upgrading the crude receiving facilities at the Jebel Dhanna terminal, enabling ADNOC to utilise parts of the terminal’s existing facilities to import Upper Zakum crude oil from offshore and Non-System crude, for delivery to the new Ruwais Refinery West project, located around 12km to the east of the terminal.

ADNOC said that the ability to import other grades of crude at Jebel Dhanna will give the company greater means to extract value from every barrel of crude it produces. The terminal was originally conceived and operated as a Murban crude oil export facility since its inception in the Sixties.

Over 50 per cent of the total award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme.

Among the criteria considered before awarding the contracts, ADNOC considers the extent to which bidders would maximise ICV by way of the 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 programme, reinforcing our commitment to maximize value for the nation as we create a more profitable upstream business and deliver our 2030 strategy,” said Yaser Saeed Almazrouei, executive director of ADNOC’s Upstream Directorate.