Result from Collaboration
Samsung Engineering succeeded in winning a contract worth US$3.1 billion for oil refinery plant construction from the United Arab Emirates (UAE) with Dutch builder CB&I. Of the total order amount, Samsung Engineering’s share stands at US$2.6 billion.
On February 8, Samsung Engineering put out a public announcement that the company received a letter of acceptance on a US$3.1billion crude flexibility project from ADNOC Refining Corp., a government-run refining company of the UAE. The ordered plant will be built at the Ruwais Industrial Complex, the largest industrial complex in the UAE.
The project aims to construct a new atmospheric residue de-sulfurization (ARDS) facility with a daily production capacity of 177,000 barrels and remodel an oil refinery plant including a conventional atmospheric distillation facility by 2022.
The ARDS facility removes sulfur residues from crude oil refining and produces light oil (gasoline, naphtha, kerosene and etc.) with high utilization value. Tougher global environmental regulations are driving up demand for ARDS facilities.
The expansion of Samsung Engineering’s partnership with CB&I also garners much attention. A recent global trend is to collaborate among companies in order to distribute risks of mega projects and strengthen business performance in implementing mega projects. CB&I is a global contractor with technical prowess and experience and a joint venture of Chevron Lummus Global, a licensor of this project.