Samsung Engineering Co., a construction unit of South Korea’s Samsung Group, and its consortium landed a deal worth $4.2 billion with the Bahrain Petroleum Co. (Bapco) to modernize refinery facilities.
Samsung Engineering said Friday that it has received a letter of award (LOA) from Bahrain ‘s state-run Bapco for the project it has secured with France-based Technip and Spain-based Tecnicas Reunidas to expand and modernize the Sitra Oil refinery. Its stake in the project is worth about $1.35 billion, the company said.
The project aims to refurbish oil refining plants of the Gulf country’s only oil refinery at Sitra. By replacing old crude distillation facility and adding a residue hydroconversion unit, it will boost Sitra’s total crude processing capacity to 360,000 barrels per day (bpd) from current 267,000 bpd, according to the company.
Samsung Engineering will carry out the project on an engineering, procurement and construction (EPC) contract basis with an aim to complete it by 2022. An official from the company said the successful implementation of the Bapco’s Lube Base Oil Plant project in 2011 helped it secure the deal.
By Yong Hwan-jin and Choi Mira
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