ADNOC invests $3.5bn to upgrade Ruwais refining capability

The Abu Dhabi National Oil Company (ADNOC) has said that it has completed 73 per cent of its “Crude Flexibility Project” (CFP) to upgrade its refining capabilities in Ruwais.

For over four decades, ADNOC has mainly refined Murban grade crude, extracted from its onshore fields in Abu Dhabi.

The CFP allows for the Upper Zakum grade, extracted from Abu Dhabi’s offshore oil fields, to be processed along with over 50 other types of different crudes, reported official news agency WAM.

Upon completion in mid-2022, the CFP will allow ADNOC to process up to 420,000 bpsd (Barrels per Stream Day) of heavier and sourer grades of crude oil, as part of the 840,000 bpsd refinery in Ruwais.

In 2018, ADNOC announced plans to diversify the feedstocks it processes. The $3.5bn (Dhs12.8bn) CFP upgrade is a core component of ADNOC 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.

Most of the physical infrastructure required for the project upgrade has been put in place. Two new fractionators from South Korea and 24 atmospheric residue desulfurizer reactors have been installed over the past two months.

“We continue to focus on stretching the margin of every barrel of oil we produce to maximise the value of our resources, while also making responsible investments in the current market environment,” said Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC group CEO.

“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.”

The upgrading of the Ruwais refinery is a cornerstone of ADNOC Downstream’s 2030 smart growth strategy, launched at ADNOC’s Downstream Investment Forum in 2018.