Adnoc confirmed on Monday that significant progress has been made on its Crude Flexibility Project (CFP), with 73 per cent delivery. - Reuters
Dubai - The CFP upgrade initiative is a core driver of the oil giant's Downstream's 2030 smart growth strategy.
Published: Mon 17 Aug 2020, 5:21 PM
Updated: Thu 20 Aug 2020, 8:58 AM
The Abu Dhabi National Oil Company's (Adnoc) $3.5 billion project to upgrade Ruwais refining capabilities is on track for completion in mid-2022, enabling the oil conglomerate to process up to 420,000 barrels per stream day (bpsd).
Adnoc confirmed on Monday that significant progress has been made on its "Crude Flexibility Project" (CFP), with 73 per cent delivery. The ongoing project is to upgrade refining capabilities and strengthening the role of Ruwais as a critical driver for industrial growth for Abu Dhabi and the UAE, the company said in a statement.
Adnoc, which has been refining for more than 40 years Murban grade crude from its onshore fields, said the CFP would also enable the processing of the Upper Zakum grade crude from Abu Dhabi's offshore oil fields along with over 50 other types of different crudes.
"We continue to focus on stretching the margin of every barrel of oil we produce to maximize the value of our resources, while also making responsible investments in the current market environment. This investment is another step in our progress to develop Ruwais into a dynamic, global hub for downstream activity, further strengthening Adnoc's role as a key driver of the UAE's long-term industrial growth and economic diversification," said Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO.
In 2018, Adnoc announced plans to diversify the feedstocks it processes. The $3.5 billion CFP upgrade initiative is a core driver of the oil giant's Downstream's 2030 smart growth strategy. The project will increase the value Adnoc derives from every barrel of oil, both by boosting refining margins and by leaving more high-value Murban crude available for export, the company said.
"Much of the physical infrastructure required for the CFP has now been put in place. Major structural elements, notably two new fractionators and 24 atmospheric residue desulfurizer reactors have been installed at the site over the past two months," said the statement.
Upon completion in mid-2022, the CFP will allow Adnoc to process up to 420,000 bpsd of heavier and sourer grades of crude oil, as part of the 840,000 bpsd refinery in Ruwais.
Adnoc has been attracting significant foreign investment to Ruwais and expanding its downstream partnerships across its refining, fertilizer, and pipeline assets. Adnoc Refining produces more than 40 million metric tons of refined products for markets around the world. It refines up to 922,000 barrels of crude oil and condensate per day into various products. - issacjohn@khaleejtimes.com
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