01 October 2020

Adnoc Onshore, a subsidiary of the Abu Dhabi National Oil Company (Adnoc), has awarded 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 Dh899.9 million ($245 million) and were awarded to China Petroleum Pipeline Engineering Company – Abu Dhabi and the UAE-based Target Engineering Construction.

Over 50 per cent of the total award value will flow back into the UAE’s economy under Adnoc’s In-Country Value (ICV) programme, underscoring the company’s drive to prioritise ICV as it invests responsibly and pursues smart growth to maximise value from its assets and deliver sustainable returns to the UAE.

Yaser Saeed Almazrouei, Executive Director of Adnoc’s Upstream Directorate, says: “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 optimise 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 programme.”

The EPC contract awarded to China Petroleum Pipeline Engineering – Abu Dhabi is valued at approximately $135 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 per cent.

The contract is expected to be completed in 30 months and will see over 45 per cent of the award value flow back into the UAE’s economy under Adnoc’s ICV programme.

The $100-million EPC contract awarded to Target Engineering Construction 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 crude oil from offshore and Non-System (NS) crude, for delivery to the new Ruwais Refinery West project, located approximately 12 km to the east of Jebel Dhanna terminal.

The contract is expected to be completed in 20 months and will see over 60 per cent of the award value to Target Engineering flow back into the UAE’s economy under Adnoc’s ICV programme.  

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