Petrofac drops bid for $12bn ADNOC refinery job

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The CEO of the oilfield services contractor Petrofac has said that the company has dropped its tender bid to upgrade ADNOC’s Ruwais oil refinery in Abu Dhabi.

“We just don’t see that we will be competitive enough,” Asfari is quoted by Bloomberg as saying.

The ambitious US$12 billion refinery upgrade project will see ADNOC subsidiary, Abu Dhabi Oil Refinery Co (Takreer), more than double oil refining capacity at the facility from 400,000 barrels per day (bpd) to 817,000 bpd.

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FEATURED COMMENT petrofac very big company and i think it will be the first in gulf next 10 years   4 Comments Read more comments »

The cost of the project has been open to speculation for some time and Petrofac’s withdrawal from the project has led to speculation from within the industry that Takreer are being overly optimistic about cutting a large percentage from the budget.

“I’m not surprised [about Petrofac’s withdrawal]. There is a growing feeling among many contractors that unrealistic figures are now being bandied about for major projects. This can't be sustained,” a UAE-based contractor told ArabianOilandGas.com.