Adnoc to invest $3.1bn into Ruwais oil refinery modification project

Abu Dhabi National Oil Company (Adnoc) has unveiled plans to invest $3.1bn in Ruwais oil refinery to introduce crude processing flexibility.

The proposed crude flexibility project (CFP) is part of Adnoc’s move to fast track delivery of its downstream refining strategy.

The strategy will enable the company to leverage crude and product marketing initiatives in order to enhance margins.

A joint venture between Samsung Engineering (Korea) and C B & I (Netherlands) has been awarded the engineering, procurement and construction (EPC) contract for the project.

Adnoc Downstream Directorate director Abdulaziz Abdulla Alhajri 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.”

Slated for completion by the end of 2022, the refinery modifications are expected to allow the company’s Ruwais Refinery-West complex to process up to 420,000bpd of Upper Zakum crude through the addition of an atmospheric residue de-sulphurisation (ARDS) unit.

Through the project, the company will be able to export Murban crude, capitalising on its higher price on global oil markets.

The use of ARDS technology enables companies to upgrade medium-to-heavy petroleum oils and residues to environmentally friendly transportation fuels.

Additionally, the technology can be used to partially convert the residues to produce low-sulphur fuel oil and hydrotreated feedstocks.