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ADNOC Awards Samsung Two Contracts to Boost Output of Ruwais Refinery

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan. Reuters
Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan. Reuters
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ADNOC Awards Samsung Two Contracts to Boost Output of Ruwais Refinery

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan. Reuters
Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan. Reuters

Abu Dhabi National Oil Company (ADNOC) said Monday it has awarded two contracts worth 12.8 billion dirhams ($3.5 billion) to South Korea's Samsung Engineering to boost output at the largest refinery in the United Arab Emirates.

The contracts were signed by ADNOC Refining, a wholly owned subsidiary of ADNOC, and Samsung Engineering.

The first engineering, procurement and construction (EPC) contract was awarded for a $3.1 billion project on flexibility in crude oil processing in Ruwais refinery.

The crude flexibility project is scheduled to be completed by the end of 2022. It will enable the Ruwais Refinery-West plant to process up to 420,000 barrels per day of Upper Zakum crude, or similar oil grades, freeing up more exports of ADNOC’s Murban crude, which is sold at a premium.

While the second EPC contract is for a 1.73 billion dirhams ($473 million) project to recover power and water, also at the Ruwais oil refinery.

This project is scheduled to be completed by the end of 2023. It will generate an additional 230 megawatts of electricity for sale and 62,400 cubic meters of water daily by capturing waste heat and upgrading four gas turbines with closed-cycle power generation technology.

The signing of the contracts coincided with the visit of South Korea's President Moon Jae-in to the UAE.

ADNOC’s Downstream Director Abdulaziz al-Hajri and CEO of Samsung Engineering Choi Sung-An signed the deals in the presence of Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Paik Ungyu, Minister of Trade, Industry and Energy, Republic of Korea.

"ADNOC has a long and successful history of working with Korean companies as partners in our concession areas, as contractors for our major projects and as a customer of our crude oil and refined products,” Al Jaber said.

“The award of two major Engineering, Procurement and Construction [EPC] contracts reinforces the strong business relationship that exists between the UAE and Korea," Al Jaber added.

"As ADNOC continues to deliver on its 2030 smart growth strategy, a number of new and exciting opportunities exist across our value chain, particularly in the downstream, which offer the potential to deepen and develop the longstanding relationship between ADNOC and its Korean counterparts," he further noted.

The project will significantly contribute to reducing the environmental impact of ADNOC's refining and power generation processes as well as improving energy efficiency.

The two projects represent an important development within ADNOC's efforts to enhance value in the field of gas and petrochemical refining.

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Saudi Arabia’s Mandatory List Boosts Local Companies in Government Procurement

A factory in Saudi Arabia (Asharq Al-Awsat)
A factory in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia’s Mandatory List Boosts Local Companies in Government Procurement

A factory in Saudi Arabia (Asharq Al-Awsat)
A factory in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s Mandatory List has emerged as a strategic lever to strengthen the role of local businesses in public sector procurement.

Designed to drive demand for Saudi-made products, the list not only expands market opportunities for domestic manufacturers but also ensures that government entities procure reliable goods that meet stringent quality standards.

Last year, government tenders that included items from the list surpassed 46,600, with a combined value of SAR67.6 billion ($18 billion).

The Local Content and Government Procurement Authority has been steadily updating the list, adding about 407 new products in 2024.

This week, officials announced a further expansion, introducing 105 additional products across seven key sectors: pharmaceuticals and medical supplies, construction, transportation and logistics, furniture, cybersecurity, and information technology.

Authorities say this effort underscores a broader commitment to make local content a cornerstone of Saudi Arabia’s future economy. By prioritizing Saudi products, the government aims to empower national industries, spur innovation, and increase job opportunities while reducing reliance on imports.

The latest update is also part of policies favoring small and medium enterprises (SMEs) and companies listed on the Saudi financial market.

The initiative seeks to strengthen local supply chains and raise the readiness of domestic factories to fulfill public sector demand.

According to the Authority, expected government spending on the newly added products exceeds SAR2.3 billion ($613 million). More than 100 Saudi factories are already equipped to meet this anticipated demand.

These measures form part of broader efforts to maximize the economic impact of public spending. In the second half of last year alone, a series of new policies, strategic agreements, and national programs contributed to economic gains exceeding SAR80 billion ($21.3 billion).

The Authority also integrated local content requirements into 54 privatization projects valued at SAR269 billion ($71.7 billion). Of these, 24 projects have already achieved their targets, representing overSAR 131 billion ($34.9 billion) in contracts aimed at boosting private sector participation and employment.