Daewoo E&C will take charge of the front end engineering design (FEED) of an oil facility in Venezuela, the country with the largest oil reserves. FEED is considered a part of the basic design, and so far has been dominantly led by Japan and Europe.
On September 9, Daewoo E&C announced that it signed a US$67.34 million FEED contract with Petróleos de Venezuela, S.A. (PDVSA) at the level between basic design and detail design.
Plant design is divided into basic and detailed designs. Most domestic construction and engineering companies have high level techniques of detail design, but global companies of advanced nations such as the US and Europe have been dominating the sector of basic design and FEED.
This is a three-package project for building oil storage, delivery, and docking facilities in Oricono, the largest oil-field region of Venezuela.
Currently, Daewoo E&C and STX Heavy Industries are about to set up a joint venture with each investing 50%. POSCO E&C will also join the business sooner or later.
In particular, Daewoo E&C signed a memorandum of understanding (MOU) with the Venezuelan contractor in April last year to take care of the entire EPC process, which heightens the possibility of contracting an additional EPC order worth US$10 billion.