UAE’s ADNOC awards $324 mil of contracts for onshore oil fields, Fujairah

  • Oct 27, 2020
  • Investing

Abu Dhabi National Oil Co., the UAE’s biggest energy producer, announced Oct. 26 the award of three contracts worth $324 million for work on some of its onshore oil fields and terminals at Fujairah and Jebel Dhanna.

ADNOC Onshore, a unit of the parent company, awarded the contract to UAE’s Galfar Engineering and Contracting and Robt Stone Middle East, ADNOC said in a statement. The three contracts include the procurement and construction of flowlines and wellhead installations across several onshore Abu Dhabi oil fields and the engineering, procurement, and construction of a new bypass system to provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals, ADNOC said.

“The award for flowlines and wellhead installations will help sustain long-term production at our Bab, Asab, and Sahil fields while the award for the bypass system will provide critical backup for the existing crude receiving station connecting our fields and export terminals, to ensure business continuity and resilience,” Oman al-Nasri, CEO of ADNOC Onshore, said in the statement.

The awards follow $245 million worth of contracts announced in September to upgrade oil pipeline and crude receiving facilities at the Jebel Dhanna terminal.

China Petroleum Pipeline Engineering Co. and Abu Dhabi-based Target Engineering Construction Co. won the engineering, procurement and construction contracts that will be completed in 30 months, ADNOC said on Sept. 9.

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

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 transfer Upper Zakum from offshore and other crudes for delivery to the new Ruwais Refinery West project, located some 12 km east of the terminal.

Source: Platts