Samsung Engineering Co., a major South Korean industrial plant builder, said Thursday that its joint venture secured a $3.1 billion deal to upgrade an oil refinery in the United Arab Emirates.
Under the deal with the Abu Dhabi National Oil Company, Samsung and Netherlands-based CB&I will introduce crude processing flexibility at Ruwais oil refinery, the builder said.
The refinery modifications -- set to be completed by the end of 2022 -- will enable ADNOC's Ruwais Refinery-West complex to process up to 420,000 barrels per day of Upper Zakum crude, or similar crude types from the market, freeing Murban crude for export, according to ADNOC.
"Enabling the Ruwais Refinery-West to process Upper Zakum, or similar, medium sour crude, in place of Murban light sweet crude, will allow us to extract greater value from our crude resources," Abdulaziz Abdulla Alhajri, Director of ADNOC's Downstream Directorate, said in comments posted on the company's website.
The planned modifications will add an Atmospheric Residue De-Sulphurisation unit that will enable the refinery to process the Upper Zakum crude, or other similar crudes from the market, according to ADNOC.
The ARDS technology is used in upgrading medium to heavy petroleum oils and residues to more valuable clean environmentally friendly transportation fuels and to partially convert the residues to produce low-sulfur fuel oil and hydrotreated feedstocks, ADNOC said.
Samsung said its stake in the project is $2.6 billion, with CB&I's portion standing at $500 million. (Yonhap)