Largest Project Ever
Five South Korean construction firms – Daewoo Engineering & Construction (E&C), Hyundai Engineering & Construction (E&C), SK Engineering & Construction (E&C) and Hanwha Engineering & Construction (E&C) – signed a US$4.54 billion (5.12 trillion won) formal contract for the New Refinery Project (NRP) in Al Zour, Kuwait.
According to industry sources on Oct. 14, the five companies formally closed the deal with the Kuwait National Petroleum Company (KNPC) in Kuwait on Oct. 13 (local time).
The NRP project commissioned by the KNPC is the largest overseas construction project this year, with total project expenses reaching US$14 billion (15.78 trillion won). South Korean builders established consortia and won four out of five packages of the project.
A Daewoo E&C consortium won the second and third packages, which involve the largest scale of construction worth US$5.76 billion (6.49 trillion won), and the share of Daewoo E&C accounts for 35 percent, or US$2.02 billion (2.28 trillion won), of the total. Hanwha E&C, in concert with Spain's Tecnicas Reunidas and China's Sinopec, won the first construction package worth US$4.23 billion (4.78 trillion won), and Hanwha’s share accounts for 10 percent or US$423 million (476.72 billion won).
Also, a consortium of SK E&C and Hyundai E&C won the fifth package, which involves the construction of marine oil shipment facilities worth US$1.5 billion (1.69 trillion won). SK E&C has a 30 percent stake worth US$450 million (507.15 billion won) in the contract, while Hyundai E&C has a 40 percent stake worth US$600 million (676.2 billion won).