07-08-2017

Samsung Engineering awarded refinery project in Oman

Samsung Engineering publically announced today, that it received an ITA (Intention To Award) from the Duqm Refinery Petrochemical Industries Company LLC (DRPIC) for the Duqm refinery project package 2 - Utilities & Offsites, located in the southern part of Oman. Samsung Engineering has won this project, in a 50/50 joint venture with Petrofac with a total order value of about $ 2 billion USD.

Oman’s Duqm Refinery, which is part of Duqm Special Economic Zone, awarded three packages for its planned 230,000 barrels-a-day (b/d) refinery. Samsung and Petrofac won package two, the U & O (Utilities & Offsites). The U & O package consists of a utility production facility that produces water, air, steam and electricity essential to the plant, a tank that stores crude oil before and after the refinery, and a sewage treatment facility. The project, which will be executed on an EPC turnkey basis, is expected to be completed in 2021.

With this order, Samsung Engineering was able to reach two goals in one strike - the advancement into the Omani market for the first time and the acquisition of a new client in DRPIC. Especially acquiring DRPIC as a client is a major achievement, since DRPIC is a joint venture between Oman Oil Company (OOC) and Kuwait Petroleum International (KPI), who invest in refinery and petrochemical complexes. Accordingly, Samsung Engineering expects to gain a promising spot in the potential petrochemical project market, which is expected to receive orders next to oil refining. In addition, Samsung Engineering completed the final puzzle of winning contracts in all the Gulf Cooperation Council (GCC) countries with entering Oman.

Samsung Engineering has partnered with Petrofac in this mega project to diversify risks and to strengthen business performance. This JV can further benefit from Petrofac’s wealth of project experience in Oman and moreover since Samsung and Petrofac have already teamed up with KNPC's Clean Fuel Project (CFP) in Kuwait, will be able to fully demonstrate their collaboration know-how in this project.

Choong Heum Park, President and CEO of Samsung Engineering stated, "Samsung Engineering has already accomplished several large U & O projects. We will be able to successfully complete this project and further strengthen our market presence in the GCC, including Oman."