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MEOG Commentary MEOG
per year of gas. KbR is again the PMC contrac- tor, while compatriot bechtel is carrying out the FEED.
Those believed to have received the bid doc- uments include Greece’s Archirodon, India’s Larsen & Toubro, the uS’ McDermott, Abu Dhabi government-affiliated National Petro- leum Construction Co. (NPCC), the uK’s Pet- rofac, Rosetti Marino and Saipem, both Italian, and uK-based TechnipFMC.
Early contracts on the scheme were awarded last year under a process overseen by Oxy and OMV – with the uS’ KbR winning the PMC, TechnipFMC selected for the FEED and NPCC let an engineering, procurement, construction and installation (EPCI) job covering four well- head jackets to enable initial drilling work to proceed.
On August 21, Aker reported that it had been awarded a $78mn contract by ADNOC to supply umbilicals for the Dalma offshore gas project.
It said that the scope of the deal included more than 100km of four steel tube umbili- cals. “The umbilical system will provide power supply, communication services and chemical injection fluids [and] will connect the subsea equipment to three new wellhead platforms and link the topside equipment located on the offshore control platform to equipment located onshore,” the Norwegian firm disclosed.
The latest awards are further evidence of ADNOC’s emphasis on developing the conces- sions it has finalised over the past 18 months and EPC contractors are sure to be queuing up for more work.
Ruwais refining intent
In related news, ADNOC said separately last week that it wanted to expand its ADNOC Refin- ing arm and increase capacity to 1.5mn barrels per day (bpd).
In January, Eni and OMV signed share pur- chase agreements to acquire interests of 20% and
15% respectively in ADNOC Refining for a com- bined total of around $5.8bn after the deduction of year-end 2018 net debt. ADNOC retains 65%. However, this is currently limited to existing refineries, which have a combined capacity of 925,000 bpd.
Speaking to Reuters, Rizwan Khalil Sheikh, senior vice-president, Downstream Strategy and business Development, said: “We are partners with OMV and Eni: obviously our desire would be to expand together for the new refinery; at the same time we are so committed to this expansion that if we are not able to align with them, then we may chose to progress on our own.”
The January deal valued ADNOC Refining at around $19.4bn and covered the 837,000 bpd Ruwais refining complex in the Western Region and an ageing 85,000 bpd facility near Abu Dhabi City, as well as a 1,900-km pipeline net- work. The trio also agreed to establish a physical and derivatives trading JV incorporated at Abu Dhabi Global Markets for exports of the refin- eries’ products, which account for around 70% of output, with the rest deployed domestically.
ADNOC intends to double its refining capac- ity and triple petrochemical output by 2025.
Sheikh said, though, that part of the expan- sion would see the refinery near Abu Dhabi City ‘mothballed’, with Ruwais seen as the home of the emirate’s refining sector.
He said: “All of our refineries are at Ruwais, we do have one refinery which is in Abu Dhabi City itself. because of its proximity to urban areas we are looking to mothball that. That’s why despite the expansion we will get 1.5mn bpd.”
He added that in addition to expanding the existing Ruwais refinery, ADNOC planned to build a new 400,000-600,000 bpd unit, with the first expansion phase coming in 2024. Sheikh concluded by saying that the Ruwais refinery would also be upgraded to allow it to process additional crude grades where it is currently limited to murban.™
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