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ABU DHABI / WAM
On the occasion of visit of South Korean President Moon Jae-in the UAE, Abu Dhabi National Oil Company (Adnoc) announced signing of two major contracts between Adnoc Refining and Samsung Engineering Co Ltd, worth a total value of over $3.5 billion.
The signing of the agreements was witnessed by Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and Adnoc Group CEO, and Paik Ungyu, Korea’s Minister of Trade, Industry and Energy. 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 the Adnoc -owned Ruwais oil refinery — mark another significant step forwards as Adnoc accelerates the delivery of its Downstream strategy.
Dr Al Jaber said, “Adnoc has a long and successful history of working with Korean companies as partners in our concession areas, as contractors for our major projects, and as a customer of our crude oil and refined products. The award of two major Engineering, Procurement and Construction (EPC) contracts reinforces the strong business relationship that exists between the UAE and Korea.
The first of the two contracts was an EPC contract for a crude oil processing flexibility project. Scheduled to be completed by end of 2022, this project will enable Adnoc’s 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, also by Adnoc Refining to Samsung Engineering, was 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, while improving energy efficiency.