Samsung Engineering stated that it had been awarded a $2.73BN USD contract from Abu Dhabi Oil Refining Company TAKREER, an affiliate of ADNOC, for the Utilities & Offsite package 3 of the Ruwais Refinery Expansion Project (RRE).
Set for mechanical completion by April 2013, the package 3 unit is expected to supply utilities into the complex which is expected to produce another 400,000 barrels of oil. Samsung Engineering will perform engineering, procurement and construction on a LSTK (lump sum turn-key) basis for package number 3, which will be located in Ruwais, 250km away from the capital of the UAE.
In October, Samsung Engineering was awarded its second project from ADNOC, a $1.2BN USD fertilizer plant order. The Borouge OCU plant, which was Samsung Engineering's first project with ADNOC, is scheduled for completion by the end of this year. ADNOC has 15 subsidiaries that engage in areas such as E&P, refinery, gas, and petrochemical, with extensive plans to invest several billion dollars annually for these projects.
Samsung Engineering President and CEO Yeon-Joo Jung stated, “We have accumulated outstanding business performance in the world market, allowing us to expand our markets and client base." "This strong partnership with the UAE will allow us to forge future projects with the nation, which ranks as the 5th largest oil and gas reserves in the world," he also remarked.
The investment for the RRE project exceeds $10BN USD, and is to be executed mainly by Korean contractors. Early this November, Korean contractors SK E&C and GS E&C were announced the winners for package #1 & #2 orders. With Samsung Engineering as the recipient of package #3, has further proved the strength of the Korean engineering industry in overseas markets.
From year-to-date, Samsung Engineering has achieved over $8BN USD in new overseas orders this year. Based on an established $10BN USD project capability this year, Samsung Engineering plans to increase its capability over 30% annually.