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ADNOC awards design contract to Wood Group for refinery

Feb 21, 2019
3 min read
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ADNOC Refining said it awarded a design contract to the Wood Group, for a new refinery in Ruwais as the state energy group moves to build the downstream industry.

ADNOC has ambitious plans to build the world’s largest integrated refining and petrochemicals complex in Ruwais, and become a global leader in engineering, project and technical services.

The award for the Pre-Front End Engineering and Designing (Pre-FEED) is for a refinery with a capacity of 600,000 barrels of crude oil per day. This is the second stage in a four-stage process to get to the beginning of construction. The previous stage was a feasibility study. The Pre-FEED is expected to be completed by the end of this year, ADNOC said.

The new refinery will be designed to have full conversion capability and allow integration with petrochemicals industries in Ruwais which is already the fourth largest single site refinery in the world.

The contract award is a key milestone as ADNOC accelerates delivery of its AED 165 billion (USD$45 billion) expansionary downstream strategy.

ADNOC Refining CEO, Jasem Ali Al Sayegh said: “Today marks a significant step towards fulfilling ADNOC’s strategy of developing the largest integrated refinery and petrochemicals complex in the world. 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.”

The announcement follows last month’s signing of two strategic equity partnerships between ADNOC and Eni and OMV, covering both ADNOC Refining and a new trading joint venture, which will be jointly established by the three partners. Eni and OMV will acquire 20 per cent and 15 per cent shares in ADNOC Refining respectively, with ADNOC owning the remaining 65 per cent. Eni and OMV will also own 20 per cent and 15 per cent of the shares respectively of the trading joint venture. According to ADNOC, the transactions reflect the scale, quality and growth potential of ADNOC Refining’s assets, coupled with an advantageous location from which to supply markets in Africa, Asia and Europe.

In May 2018, ADNOC announced plans to invest, alongside partners, in creating the world’s largest and most advanced integrated refining and petrochemicals complex at Ruwais. A cornerstone of the plan is expansion of refining capacity by more than 65 per cent by 2025, creating a total capacity of 1.5 million barrels per day (mbpd).

The new refinery, coupled with other projects underway within the Ruwais complex, will significantly increase the capability, flexibility and output of ADNOC Refining’s operations by adding to the range of crudes that can be processed.

The AED 165 billion investment program will also see the entire Ruwais complex upgraded to dramatically increase its flexibility and integrated capabilities to produce greater volumes of higher-value petrochemicals and derivative products. It includes a plan to build one of the world’s largest mixed feed crackers, trebling ADNOC’s production capacity from 4.5 mtpa in 2016 to 14.4 mtpa by 2025.

In addition to investing in its refining and petrochemicals operations, ADNOC will develop an integrated downstream ecosystem in Ruwais, including new derivatives and conversion parks, to stimulate In-Country Value creation, employment opportunities, and private sector and GDP growth. It also intends to undertake highly targeted overseas investments to secure greater market access for its downstream products.

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