Abu Dhabi National Oil Co. (ADNOC) has announced the signing of two major contracts between ADNOC Refining, a wholly owned subsidiary of ADNOC, and Samsung Engineering Co. Ltd. The contracts are reportedly worth a total value of in excess of US$3.5 billion.
The two contracts –a US$3.1 billion project to introduce crude oil processing flexibility and a US$473 million project to recover power and water, both at the ADNOC-owned Ruwais oil refinery – mark another significant step forwards as ADNOC accelerates the delivery of its Downstream strategy.
The agreements were signed by Abdulaziz Alhajri, ADNOC’s Downstream Director, and Choi Sung-An, CEO of Samsung Engineering, witnessed by H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and H.E. Paik Ungyu, Minister of Trade, Industry and Energy, Republic of Korea.
The first of the two new contracts awarded by ADNOC (ADNOC Refining) to Samsung Engineering was an EPC contract for a crude oil processing flexibility project. Scheduled to be completed by the end of 2022, this project will enable ADNOC’s Ruwais Refinery-West complex to process up to 420 000 bpd of Upper Zakum crude, or similar crude types from the market, allowing ADNOC to extract greater value from its crude resources by liberating Murban crude, which commands a higher price on global oil markets, to be utilised for export sales.
The second contract awarded by ADNOC Refining to Samsung Engineering was an EPC contract for a new waste heat recovery project. This project, scheduled for completion by the end of 2023, will generate an additional 230 MW of electricity for sale and 62 400 m3 water daily by capturing waste heat, which is currently vented into the atmosphere, by upgrading four giant gas turbines with closed-cycle power generation technology. The project will play a significant role in reducing the environmental impact of ADNOC’s refining and power operations, whilst improving energy efficiency.
In line with the standard selection criteria for all EPC contracts, ADNOC Refining carefully reviewed the ‘In-Country Value’ (ICV) component of all bids submitted for both of the awarded contracts. ICV was a critical consideration in the tender evaluation and contractor selection process as ADNOC’s ICV strategy seeks to stimulate private sector partnerships and opportunities resulting from ADNOC’s 2030 growth strategy, catalyse socio-economic development, improve knowledge transfer and create additional employment for UAE nationals. It reinforces the company’s commitment to supporting local businesses and their role in driving economic diversification and GDP growth.
ADNOC is making significant investments in new downstream projects to grow its refining capability and expand its petrochemical production three-fold to 14.4 million tpy by 2025. Planned projects include a world scale, mixed liquid feedstock Naphtha cracker, as well as investments in new refinery capacity. As a result of the planned expansions in its Downstream business, ADNOC will create one of the world’s largest integrated refining and petrochemical complexes at Ruwais, located in Abu Dhabi’s Al Dhafra region.
Read the article online at: https://www.hydrocarbonengineering.com/refining/27032018/adnoc-awards-two-contracts-to-samsung-engineering/