UAE Refinery Contract Goes to Wood
Wood Group has won a pre-front end engineering and design (pre-FEED) contract for ADNOC Refining’s new 600,000-barrel per day (bpd) refinery, Abu Dhabi National Oil Co. (ADNOC) reported Thursday.
“Today marks a significant step towards fulfilling ADNOC’s strategy of developing the largest integrated refinery and petrochemicals complex in the world,” ADNOC Refining CEO Jasem Ali Al Sayegh said in a written statement emailed to Rigzone. “We are delighted to partner with Wood and to have their global expertise available to us. This is a major milestone in the future growth plans of ADNOC Refining.”
In a separate announcement, Wood stated that the $8 million pre-FEED contract will include:
- Licensor selection
- Site master plan development
- Scope of work for the FEED phase
- An engineering, procurement and construction schedule and cost estimate
“We are pleased to continue our relationship with ADNOC Refining,” Bob MacDonald, CEO of Wood’s Specialist Technical Solutions unit, said in his company’s announcement. “This pre-FEED award allows us to partner with ADNOC in developing a world-scale state-of-the-art facility – a major flagship development for the UAE. This contract also enables us to expand our footprint in the Middle East and supports our commitment to developing and enhancing local engineering capabilities in Abu Dhabi.”
According to ADNOC, the pre-FEED award marks a significant milestone within its U.S. $45 billion strategy to expand its global downstream profile and increase the range and volume of downstream products it sells. Pre-FEED represents the second stage in a four-stage process to reach construction for the new refinery, which will boast full conversion capability and will integrate with existing refinery facilities at Ruwais, ADNOC added.
Last month, ADNOC signed a pair of strategic equity partnerships with Eni S.p.A. and OMV Group through which the latter two firms will acquire stakes in ADNOC Refining and a new trading joint venture (JV). ADNOC stated that it will own 65 percent of ADNOC Refining and Eni and OMV will hold 20-percent and 15-percent shares in the firm, respectively. An identical ownership breakdown will exist for the trading JV – designed to supply African, Asian and European markets. ADNOC also noted that it aims to expand total refining capacity at Ruwais to 1.5 million bpd – a 65-plus-percent increase from current capacity – by 2025.
Wood stated Thursday that the pre-FEED phase should conclude by the end of this year.
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