Hyundai Engineering & Construction Co., one of Korea's top builders, said Thursday it has sealed a US$2.99 billion contract to expand the output of an oil refinery in Venezuela.

The deal calls for expanding output at the Puerto La Cruz refinery owned by state-owned Petroleum of Venezuela, 250 kilometers east of Caracas, the builder said in a press release. It added that Hyundai will update existing facilities so the refinery in the port city can produce more value-added goods for the market.

The refinery expansion is to be finished 42 months after work begins.

The company said the refinery order marks the first time it has entered the South American country and expressed expectations that it could lead to future business tie-ups down the road.

Besides Hyundai, China's Wilson Engineering will take part in the Puerto La Cruz construction work. (Yonhap)