By Jhoo Dong-chan
Daewoo Engineering & Construction (E&C) and Samsung Engineering are set to participate in a 5 trillion won ($4.4 billion) construction project in Oman.
The two Korean builders said Tuesday they separately won two of the three contract packages ordered by Duqm Refinery & Petrochemical Industries Company, a joint venture between Oman Oil Company and Kuwait Petroleum International.
The packages are about constructing refinery facilities 550 kilometers south of Oman's capital city Muscat. It will be able to process 230,000 barrels of crude oil a day in the Duqm Special Economic Zone. Italian builder Saipem won the third contract.
Daewoo E&C will carry out the first construction package for $2.75 billion together with Spanish builder Tecnicas Reunidas. The 47-month construction package involves engineering, procurement and construction (EPC) operations for the refinery's main facilities. The Seoul-based firm holds a 35 percent stake, or $962.5 million, in the package.
"Daewoo E&C managed to win the contract in a difficult situation like the Middle East's low demand due to low oil price. The contract means a lot to us," a Daewoo E&C official said.
"The project will boost the company's profitability in the region. Daewoo E&C will do its best to win follow-up deals for other major construction projects in Oman."
Samsung Engineering also won the second contract package together with British oil facility service company Petrofac. The $2 billion construction package to build utilities and offsite facilities for the refinery is expected to be finished by 2021.
Samsung Engineering holds a 50 percent stake, or $1 billion, in the package.
Unlike the deal with Daewoo E&C, Samsung Engineering will carry out the contract project on a turnkey basis to build various utility facilities, including water, air and oil tanks as well as a sewer system, for the refinery.
In EPC operations, an ordering company provides basic engineering to a contractor, and the latter will perform detailed design based on received engineering. It is different from turnkey operation where the employer only provides certain technical specifications of the project and it is the responsibility of the contractor to carry out basic and detailed design of the project.
"We have experience in proceeding with utilities and off-sites projects in the past and we expect to strengthen our competitiveness and influences not only in Oman but also in other countries in the Gulf Cooperation Council by completing the construction successfully," a Samsung Engineering official said.
Daewoo Engineering & Construction (E&C) and Samsung Engineering are set to participate in a 5 trillion won ($4.4 billion) construction project in Oman.
The two Korean builders said Tuesday they separately won two of the three contract packages ordered by Duqm Refinery & Petrochemical Industries Company, a joint venture between Oman Oil Company and Kuwait Petroleum International.
The packages are about constructing refinery facilities 550 kilometers south of Oman's capital city Muscat. It will be able to process 230,000 barrels of crude oil a day in the Duqm Special Economic Zone. Italian builder Saipem won the third contract.
Daewoo E&C will carry out the first construction package for $2.75 billion together with Spanish builder Tecnicas Reunidas. The 47-month construction package involves engineering, procurement and construction (EPC) operations for the refinery's main facilities. The Seoul-based firm holds a 35 percent stake, or $962.5 million, in the package.
"Daewoo E&C managed to win the contract in a difficult situation like the Middle East's low demand due to low oil price. The contract means a lot to us," a Daewoo E&C official said.
"The project will boost the company's profitability in the region. Daewoo E&C will do its best to win follow-up deals for other major construction projects in Oman."
Samsung Engineering also won the second contract package together with British oil facility service company Petrofac. The $2 billion construction package to build utilities and offsite facilities for the refinery is expected to be finished by 2021.
Samsung Engineering holds a 50 percent stake, or $1 billion, in the package.
Unlike the deal with Daewoo E&C, Samsung Engineering will carry out the contract project on a turnkey basis to build various utility facilities, including water, air and oil tanks as well as a sewer system, for the refinery.
In EPC operations, an ordering company provides basic engineering to a contractor, and the latter will perform detailed design based on received engineering. It is different from turnkey operation where the employer only provides certain technical specifications of the project and it is the responsibility of the contractor to carry out basic and detailed design of the project.
"We have experience in proceeding with utilities and off-sites projects in the past and we expect to strengthen our competitiveness and influences not only in Oman but also in other countries in the Gulf Cooperation Council by completing the construction successfully," a Samsung Engineering official said.
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