Before Adnoc commissioned its Crude Flexibility Project (CFP) in late 2023 (MEES, 17 November 2023), the Ruwais refining complex ran almost entirely on the UAE’s flagship light crude Murban. But once complete, the project allowed Adnoc to process heavier crudes including Adnoc’s medium-sour Upper Zakum at the 417,000 b/d Ruwais West plant.
The project’s key rationale was to provide Adnoc the flexibility to switch out its flagship Murban crude in favor of heavier, cheaper grades such as Upper Zakum, freeing volumes up to be exported more profitably. But Adnoc’s timing was unfortunate, as the switch coincided with a surge in exports of comparable light US crudes and deep Opec+ cuts to medium-sour barrels. While Adnoc succeeded in pushing Murban exports to a record 1.38mn b/d for 2024, this Murban glut pushed prices below that of the traditionally-cheaper Upper Zakum through much of the last 18 months (see chart). (CONTINUED - 995 WORDS)
