South Korea's Samsung Engineering said its joint venture with CB&I, a leading global player in the technology and infrastructure services sector, has been awarded a EPC (engineering, procurement and construction) contract by Abu Dhabi National Oil Company (Adnoc) for its Ruwais oil refinery.
The Abu Dhabi oil major plans to invest $3.1 billion into the refinery project to introduce crude processing flexibility.
Known as the Crude Flexibility Project, CFP, the announcement is another significant step forward as Adnoc accelerates delivery of its downstream refining strategy that aims to enhance margins by introducing asset flexibility, backed by strong crude and product marketing initiatives.
The refinery modifications, scheduled to be completed by the end of 2022, will enable Ruwais Refinery-West complex to process up to 420,000 bpd of Upper Zakum crude, or similar crude types from the market, liberating Murban crude, which commands a higher price on global oil markets, to be utilised for export sales.
Abdulaziz Abdulla Alhajri, the director of Adnoc’s Downstream Directorate, said: "Enabling the Ruwais Refinery-West to process Upper Zakum, or similar, medium sour crude, in place of Murban light sweet crude, will allow us to extract greater value from our crude resources."
"It will mean we can maximise the benefit of price differentials to enhance refinery margins, improve the middle distillate products and release valuable Murban crude into the market," stated Alhajri.
As part of the selection criteria for the EPC contract, Adnoc Refining carefully considered the extent to which bidders would help to drive in-country value, ICV, for the UAE, stated the company.
By integrating ICV criteria into the commercial evaluation process, Adnoc aims to maximise spend on local goods and services, to support socio-economic growth, improve knowledge transfer, and create job opportunities for UAE nationals, it added.-TradeArabia News Service
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