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ADNOC invests in upgrades to Jebel Dhanna terminal

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ADNOC Onshore, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has announced the award of two Engineering, Procurement, and Construction (EPC) contracts to upgrade two main oil lines (MOLs) and crude receiving facilities at the Jebel Dhanna terminal in Abu Dhabi.

The EPC contracts have a combined value of around US$245 million (AED 899.9 million) and were awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi and Abu Dhabi-based Target Engineering Construction Co. L.L.C.

Yaser Saeed Almazrouei, Executive Director of ADNOC’s Upstream Directorate, said: “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 EPC contract awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi is valued at approximately US$135 million (AED 496.8 million) and the scope is to replace the two MOLs which transport ADNOC’s premium grade Murban crude oil from its oilfields at Bab (BAB), Bu Hasa (BUH), North East Bab (NEB), and South East (SE) to Jebel Dhanna terminal, increasing the capacity of the pipelines by over 30%.

The contract is expected to be completed in 30 months.

The EPC contract awarded to Target Engineering Construction Co.L.L.C. is valued at approximately US$110 million (AED 403.7 million) and will see the contractor upgrade the crude receiving facilities at the Jebel Dhanna terminal, enabling ADNOC to utilise parts of the terminal’s existing facilities to import Upper Zakum (UZ) crude oil from offshore and Non-System (NS) crude, for delivery to the new Ruwais Refinery West (RRW) project, located approximately 12 km to the east of Jebel Dhanna terminal.

This ability to import other grades of crude at Jebel Dhanna following the completion of the project will provide ADNOC greater flexibility. The terminal was originally conceived and operated as a Murban crude oil export facility since its inception in the 1960s.

The contract is expected to be completed in 20 months.

 

Read the article online at: https://www.tanksterminals.com/terminals/09092020/adnoc-invests-in-upgrades-to-jebel-dhanna-terminal/

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