It's a proactive step that foresees the potential for future supply shortages and that sees a need for low-cost production in the coming years." The announcement comes at a time when the Organisation of Petroleum Exporting Countries (OPEC) and other oil-producing nations such as Russia have sought to cut output among its members after the coronavirus pandemic caused a significant drop in demand for crude. Earlier this year, Adnoc awarded contracts worth $245 million to upgrade two main oil lines and terminal crude receiving facilities in Abu Dhabi. The contracts were awarded to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi and Abu Dhabi-based Target Engineering Construction. The Engineering, Procurement, and Construction (EPC) contract awarded to China Petroleum Pipeline Engineering Company is valued at approximately $135 million, and once developed it will increase the capacity of the pipelines by over 30 percent.