Adnoc awards $245m worth of contracts to upgrade terminal

Improvements to Jebel Dhanna, which was constructed in the 1960s, will allow it to process different types of crude

Adnoc's head office in Abu Dhabi. AIQ, a joint venture in which Adnoc owns 60 per cent, has already begun developing new products. Reuters

State-owned Abu Dhabi National Oil Company awarded contracts worth $245 million (Dh900m) to upgrade the Jebel Dhanna Terminal, which will give it greater flexibility to process other types of crude.

The company awarded two engineering, procurement and construction contracts to the Abu Dhabi arm of China Petroleum Pipeline Engineering and to Arabtec-owned Target Engineering.

The contracting companies will upgrade two main oil lines as well as crude receiving facilities at the terminal.

The contracts will “increase the capacity of the two main oil lines" and allow the terminal to receive Upper Zakum and non-system crude for delivery to the Ruwais Refinery West scheme, Yaser Almazrouei, executive director of Adnoc's upstream directorate, said.

The contract awarded to CPPE's Abu Dhabi arm is worth $135m and involves the replacement of the two main oil lines, which currently transport the emirate’s flagship Murban crude from the Bab, Bu Hasa, North East Bab, and South East fields to the Jebel Dhanna terminal. The infrastructure work will increase the capacity of the pipelines by more than 30 per cent.

The scheme is set to complete in 30 months, with 45 per cent of the value of the contract expected to flow back into the UAE economy.

The contract awarded to Target Engineering is worth $100m and the scope involves the upgrade of crude receiving facilities at the terminal.

The project will allow Adnoc "greater flexibility” in importing other grades of crude at the terminal. Jebel Dhanna, which was constructed in the 1960s was originally configured to process only Murban crude.

The terminal work is expected to be completed in 20 months, with 60 per cent of the value set to be ploughed back into the local economy, Adnoc said.