2020 RPME Top 30 EPC Contractors: Samsung Engineering

Published: 12 April 2020 - 3:30 a.m.
By: Martin Menachery
Samsung Engineering announced that it signed on 23 January 2020 a $1.85bn contract for the Saudi Aramco HUGRS (Hawiyah Unayzah Gas Reservoir Storage) Project. Samsung Engineering received a letter of intent and also signed a contract for initial work in November of last year. The project is located at Hawiyah 260km east of Saudi Arabia's capital Riyadh, and includes gas injection facility of 1,500 million standard cubic feet per day (MMSCFD) and a gas reprocessing facility of 2,000MMSCFD. It is a project to introduce surplus sales gas into existing well during winter and can reproduce gas in to match increase in gas demand in the summer, due to regional characteristics.

Samsung Engineering will execute the whole engineering, procurement and construction (EPC) process and expects the Saudi Aramco HUGRS to be completed in 2023. The scope of work includes gas injection facility with booster compressors and injection compressors, gas reproduction facility with reproduction compressors and slug catchers as well as utilities and offsite facilities. Samsung Engineering is confident in the success of this project, based on its rich local experience in Saudi Arabia and its strong partnership with the client.

Since its first entry into Saudi Arabia in 2003, Samsung Engineering has carried out more than 30 projects worth about $15bn, half of which are Saudi Aramco projects. Based on the gathered knowhow accumulated for numerous years, Samsung Engineering is confident that the existing network of local partners, resource utilisation, and smooth communication with the client will lead to a project, which will benefit the client and Saudi Arabia. In February 2018, Samsung Engineering won the crude flexibility project of ADNOC Refining in the UAE. At a value of $3.1bn, Samsung Engineering secured the contract with CB&I as joint venture partner. Samsung’s contract amount was $2.6bn.

This project will be built at the Ruwais Industrial Complex. It will construct a new atmospheric residue de-sulphurisation facility, with an annual capacity of 177,000 barrels per day. The estimated completion schedule is at the end of 2022. In the same month, Samsung Engineering signed the $2bn EPC Package 2 Utilities & Offsites (U&O) contract with Oman’s Duqm Refinery and Petrochemical Industries Company. The U&O package consists of a utility production facility that produces water, air, steam and electricity essential to the plant, tanks those store crude oil and intermediate and final products 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. Samsung Engineering has partnered with Petrofac in this mega project to diversify risks and to strengthen business performance.
In March 2018, Samsung Engineering won another deal from ADNOC Refining to deliver a new power and water generation plant at a total contract value of $473mn. The waste heat recovery project will be constructed at the Ruwais Industrial Complex, providing additional power and fresh water to the facility, when it comes on stream in 2023. The scope of work includes the installation of heat recovery steam generators as well as a new steam turbine and generator desalination unit.

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