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Daewoo E&C, Samsung Eng each win $1 bn refinery contract in Oman

2017.08.07 16:00:17 | 2017.08.07 16:00:56
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South Korea’s Daewoo Engineering & Construction Co. and Samsung Engineering Co. clinched a contract worth a combined $4.75 billion from Duqm Refinery & Petrochemical Industries Company LLC in southern Oman.

The two Korean companies said on Monday they separately won two of the three contracts under the project, securing a net contract amount of 2.2 trillion won ($1.95 billion). The third contract went to Italy’s Saipem.

The project was ordered by Duqm Refinery, a joint venture between Oman Oil Company and Kuwait Petroleum International, to build a refinery plant with a capacity to process 230,000 barrels of oil per day. The refinery would be situated in Duqm Special Economic Zone.

Daewoo E&C, in a joint venture with Tecnicas Reunidas of Spain, won the first contract for $2.75 billion. The 47-month project involves engineering, procurement and construction operations for the main facilities at the refinery. Daewoo Engineering holds a 35 percent stake at $962.5 million.

Samsung Engineering’s 50/50 joint venture with U.K. oilfield services company Petrofac sealed a $2 billion deal to construct utilities and offsite facilities for the refinery by 2021. The project, which will be carried out on a turnkey basis, includes water and electricity plants, oil storage tanks and water treatment systems.

Shares of Daewoo E&C closed Monday down 0.76 percent at 7,810 won. Samsung Engineering shares finished up 8.12 percent at 10,650 won.

By Lee Han-na

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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