ADNOC commits $245mn in CAPEX for strategic expansion

By Backend Office, Desk Reporter
ADNOC
Representational Image

ADNOC Onshore, a subsidiary of the Abu Dhabi National Oil Company (ADNOC) made an investment commitment worth $245 million as it 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 the Emirate of Abu Dhabi.

The EPC contracts were awarded to China Petroleum Pipeline Engineering Company Limited (CPP) – Abu Dhabi and Abu Dhabi-based Target Engineering Construction Co. L.L.C.

More than 50 percent of the total award value is expected to flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program, emphasizing ADNOC’s drive to prioritize ICV as it invests responsibly and pursues smart growth to maximize value from its assets and deliver sustainable returns to the UAE.

Yaser Saeed Almazrouei
Yaser Saeed Almazrouei
Executive Director Upstream Directorate
ADNOC

“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 programme, reinforcing our commitment to maximize value for the nation as we create a more profitable upstream business and deliver our 2030 strategy.”

Contact to CPP – Abu Dhabi 

The $135 million EPC contract awarded to China Petroleum Pipeline Engineering Company Limited (CPP) – Abu Dhabi will 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 percent.

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

Contact to Target Engineering Construction – Abu Dhabi 

With the $110 million EPC contract, Target Engineering Construction will upgrade the crude receiving facilities at the Jebel Dhanna terminal, enabling ADNOC to utilize 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 kilometers to the east of Jebel Dhanna terminal.

The project will equip ADNOC with the ability to import other grades of crude at Jebel Dhanna providing it greater flexibility in operations.

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 and will see over 60 percent of the award value to Target Engineering flow back into the UAE’s economy under ADNOC’s ICV program.

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