Business

On the occasion of the see to the United Arab Emirates (UAE) of His Excellency Moon Jae-in, President of the Republic of Korea, Abu Dhabi National Oil Company (ADNOC) revealed, today, the signing of two major agreements in between ADNOC Refining, a wholly owned subsidiary of ADNOC, and Samsung Engineering Co., Ltd, worth a complete worth in excess of USD 3.5 billion.

The signing of the two agreements was observed by H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group Chief Executive Officer, and H.E. Paik Ungyu, Minister of Trade, Industry and Energy, Republic of Korea. The agreements were authorized by Abdulaziz Alhajri, ADNOC's Downstream Director, and Choi Sung-An, CEO of Samsung Engineering.

Both contracts - the award of a USD $3.1 billion project to introduce petroleum handling versatility and the award of a USD $473 million project to recover power and water, both at the ADNOC-owned Ruwais oil refinery - mark an additional significant action forwards as ADNOC speeds up the distribution of its Downstream strategy.

H.E. Dr. Al Jaber said: "ADNOC has a long and effective background of working with Korean business as companions in our concession areas, as contractors for our major projects, and as a client of our crude oil and refined products. The award of two major Engineering, Procurement and Construction (EPC) contracts enhances the solid business connection that exists between the UAE and Korea.

" As ADNOC continues to provide on its 2030 smart development strategy, a variety of new and exciting possibilities exist across our worth chain, particularly in the downstream, which provide the potential to deepen and create the longstanding connection between ADNOC and its Korean equivalents."

H.E. Paik Ungyu said: "We offer congratulations on the finalizing in between Samsung Engineering and ADNOC Refining. I really hope that these contracts will certainly not only boost bilateral collaboration in the power industry, but will certainly likewise add to determining new joint projects."

The very first of the two new contracts awarded by ADNOC (ADNOC Refining) to Samsung Engineering was an EPC agreement for a petroleum processing adaptability project. Set up to be completed by the end of 2022, this project will make it possible for ADNOC's Ruwais Refinery-West complicated to process as much as 420,000 bpd of Upper Zakum crude, or similar unrefined kinds from the marketplace, allowing ADNOC to remove greater worth from its unrefined sources by liberating Murban crude, which commands a greater price on global oil markets, to be made use of for export sales.

The second contract awarded, also by ADNOC Refining to Samsung Engineering, was an EPC contract for a new Waste Heat Recovery Project. This project, arranged for conclusion by the end of 2023, will certainly create an added 230 MW of electrical power available for sale and 62,400 m3 water daily by capturing waste heat, which is currently aired vent right into the atmosphere, by updating 4 huge gas generators with closed-cycle power generation modern technology. The project will certainly play a significant role in reducing the environmental impact of ADNOC's refining and power procedures, whilst improving energy performance.

According to the typical choice criteria for all EPC contracts, ADNOC Refining carefully assessed the In-Country Value (ICV) part of all bids sent for both of the granted agreements. ICV was a crucial factor to consider in the tender analysis and contractor selection procedure. ADNOC's ICV strategy seeks to stimulate private sector partnerships and chances resulting from ADNOC's 2030 growth method, catalyze socio-economic advancement, boost knowledge transfer and create additional work for UAE nationals. It enhances the company's commitment to supporting local organisations and their duty in driving economic diversity and GDP growth.

ADNOC is making significant investments in new downstream jobs to grow its refining ability and broaden its petrochemical production three-fold to 14.4 mpta by 2025. Planned tasks consist of a world range, mixed fluid feedstock Naphtha biscuit, in addition to investments in new refinery capacity. As a result of the planned developments in its Downstream business, ADNOC will certainly create one of the world's largest integrated refining and petrochemical complicateds at Ruwais, located in Abu Dhabi's Al Dhafra region.

ADNOC will be organizing a significant Downstream Investment Forum in Abu Dhabi on the 13th and 14th May 2018, where it will certainly reveal more details of its Downstream Approach, consisting of the new Ruwais commercial hub masterplan.

In the upstream, Korea's GS Energy was granted a 3% stake in the ADNOC Onshore concession in May 2015, while Korea National Oil Corporation (KNOC) and GS Energy hold a 40% risk in the Al Dhafra Oil concession area, where initial crude oil production is anticipated in 2019.

Korean companies are also an important customer of ADNOC's crude oil and fine-tuned products, consisting of LPG, base oil, naphtha and fuel oil. Korea imports around 3 million barrels of petroleum each day, placing it in the leading 5 of global importing countries.

• Tags
• #Business
• #Magazine
• #Lifestyle