ABU DHABI 27 March 2018: On the occasion of the visit to the UAE by Moon Jae-in, President of the Republic of Korea, Abu Dhabi National Oil Company (Adnoc) announced the signing of two major contracts between Adnoc Refining, a wholly owned subsidiary, and Samsung Engineering, worth a total value in excess of US$3.5 billion.
The signing of the two agreements was witnessed by Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and Paik Ungyu, Minister of Trade, Industry and Energy, Republic of Korea. The agreements were signed by Abdulaziz Alhajri, Adnoc’s Downstream Director, and Choi Sung-An, CEO of Samsung Engineering.
The two contracts – the award of a $3.1 billion project to introduce crude oil processing flexibility and the award of a $473 million project to recover power and water, both at Ruwais oil refinery – mark another significant step forwards as Adnoc accelerates the delivery of its downstream strategy.
The first of the two new contracts was an EPC contract for a crude oil processing flexibility project. Scheduled to be completed by the end of 2022, this project will enable Ruwais Refinery-West complex to process up to 420,000 bpd of Upper Zakum crude, or similar crude types from the market, allowing Adnoc to extract greater value from its crude resources by liberating Murban crude, which commands a higher price on global oil markets, to be utilised for export sales.
The second contract awarded was also an EPC contract for a new Waste Heat Recovery Project. This project, scheduled for completion by the end of 2023, will generate an additional 230 MW of electricity for sale and 62,400 m3 water daily by capturing waste heat, which is currently vented into the atmosphere, by upgrading four giant gas turbines with closed-cycle power generation technology. The project will play a significant role in reducing the environmental impact of Adnoc’s refining and power operations, whilst improving energy efficiency.