A 4.3 Tril. Won Project in Algeria
Samsung Engineering announced on Jan. 9 that it has signed a contract with Algeria's largest state-owned petroleum company, Sonatrach, to carry out the Hassi Messaoud Refinery Project worth roughly 4.3 trillion won (about US$3.7 billion).
The company landed the project in cooperation with Tecnicas Reunidas, S.A. (TRSA), a Spanish general contractor. Samsung Engineering’s share of the project is about 1.9 trillion won (about US$1.64 billion).
Samsung Engineering will build a refinery that can process about 110,000 barrels of crude oil per day in the Hassi Messaoud area, 600 kilometers southeast of the Algerian capital, Algiers. The Korean company will carry out the entire process of engineering, procurement, and construction (EPC) on a turnkey basis for 52 months. It has forged a partnership with Sonatrach, Algeria's largest state-owned oil company. Sonatrach is planning to invest heavily in petrochemicals as well as energy such as oil and gas. Samsung Engineering is expected to win more orders from Sonatrach in the future.
Samsung Engineering is confident about the project as it involves building an oil refinery plant, an area where the company has expertise. Samsung Engineering has successfully carried out a number of oil refinery projects in the UAE, Saudi Arabia, Bahrain, Kuwait and Algeria. The company also looks to reduce risk and maximize synergies through collaboration with TRSA, a global EPC contractor.