Home / NEWS / ADNOC to invest $3.1bn in Ruwais refinery to bring in crude processing flexibility


ADNOC to invest $3.1bn in Ruwais refinery to bring in crude processing flexibility

by Martin Menachery on Feb 8, 2018


Modifications to Ruwais refinery west complex to be completed by the end of 2022 as ADNOC accelerates its downstream strategy delivery.
Modifications to Ruwais refinery west complex to be completed by the end of 2022 as ADNOC accelerates its downstream strategy delivery.

A $3.1bn project to introduce crude processing flexibility at the ADNOC-owned Ruwais oil refinery was announced yesterday.

Known as the Crude Flexibility Project (CFP), the announcement is another significant step forward as ADNOC accelerates delivery of its downstream refining strategy that aims to enhance margins by introducing asset flexibility, backed by strong crude and product marketing initiatives.

The announcement follows the awarding of the engineering, procurement and construction (EPC) contract, for the project, to a joint venture between Samsung Engineering (Korea) and CB&I (Netherlands).

The refinery modifications, scheduled to be completed by the end of 2022, will enable ADNOC’s Ruwais refinery west complex to process up to 420,000bpd of Upper Zakum crude, or similar crude types from the market, liberating Murban crude, which commands a higher price on global oil markets, to be utilised for export sales.

Abdulaziz Abdulla Alhajri, director, ADNOC’s Downstream Directorate, said: “Enabling the Ruwais refinery west complex to process Upper Zakum, or similar, medium sour crude, in place of Murban light sweet crude, will allow us to extract greater value from our crude resources. It will mean we can maximise the benefit of price differentials to enhance refinery margins, improve the middle distillate products and release valuable Murban crude into the market.”

The planned modifications will add an atmospheric residue de-sulphurisation (ARDS) unit that will enable the refinery to process the Upper Zakum crude, or other similar crudes from the market. The ARDS technology is extensively used in upgrading medium to heavy petroleum oils and residues to more valuable clean environmentally friendly transportation fuels and to partially convert the residues to produce low-sulphur fuel oil and hydrotreated feedstocks.

As part of the selection criteria for the EPC contract, ADNOC Refining carefully considered the extent to which bidders would help to drive in-country value (ICV) for the UAE. By integrating ICV criteria into the commercial evaluation process, ADNOC aims to maximise spend on local goods and services, to support socio-economic growth, improve knowledge transfer, and create job opportunities for the UAE nationals.


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