ADNOC awards $245 mil contracts to upgrade oil facilities at Jebel Dhanna terminal

Dubai — Abu Dhabi National Oil Co., the UAE's biggest energy producer, has awarded two companies contracts worth $245 million to upgrade oil pipeline and crude receiving facilities at Jebel Dhanna terminal, enabling it to handle crude grades other than flagship Murban.

ADNOC Onshore, a unit of the parent company, awarded China Petroleum Pipeline Engineering Co. and Abu Dhabi-based Target Engineering Construction Co. the engineering, procurement and construction contracts that will completed in 30 months, ADNOC said Sept. 9.

"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," said Yaser Saeed Almazrouei, executive director of ADNOC's upstream directorate, in a statement.

China Petroleum Pipeline Engineering Co.'s $135 million contract will replace the two main oil lines that transport Murban from its oilfields at Bab -- Bu Hasa, North East Bab -- and South East to Jebel Dhanna terminal, increasing the capacity of the pipelines by over 30 percent, ADNOC said.

Crude flexibility

Target Engineering Construction Co.'s $110 million contract 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 from offshore and other crudes, for delivery to the new Ruwais Refinery West project, located some 12 km east of the terminal.

"This ability to import other grades of crude at Jebel Dhanna following the completion of the project will provide ADNOC greater flexibility, highlighting how the company is extracting value from every barrel of crude it produces," it said. "The terminal was originally conceived and operated as a Murban crude oil export facility since its inception in the 1960s."