01. Daewoo Engineering & Construction
In August 2017, an international joint venture (JV) led by Tecnicas Reunidas and Daewoo Engineering & Construction was selected by Duqm Refinery and Petrochemical Industries Company to execute the project of the process units for the new refinery of Duqm in Oman. The contract was awarded on a lump sum turnkey basis to the JV for an approximate value of $2.75bn and duration of 47 months. Daewoo Engineering & Construction holds 35% stake in the JV.
Daewoo Engineering & Construction announced in May 2016 that it has won a tentative deal worth US$10 billion in Tehran to construct a refinery.
The company signed a memorandum of understanding (MoU) with Bahman Geno Co to build a large refinery. Planned to be located in Bandar Jask on the Gulf of Oman coast of Iran, about 1,600km southeast of Tehran, and 860km east of the South Pars refinery, the new refinery, once completed, will have a daily capacity of about 300,000 barrels of oil.
Daewoo Engineering & Construction is a Korean construction company founded and established in 1973, headquartered in Seoul, South Korea.
Petrofac is an international service provider to the oil and gas production and processing industry.
Even though Petrofac did not win any downstream sector EPC contacts in 2016, the company made three significant deals in 2017. The most important contract is the recent Duqm refinery project.
In August 2017, Petrofac, in a 50/50 joint venture with Samsung Engineering, has received notification of intent to award a contract worth approximately US$2 billion with Duqm Refinery and Petrochemical Industries Company (DRPIC) in the southern part of Oman.
Work on the 47-month project will commence shortly, subject to financial closure and full notice to proceed from DRPIC. Petrofac’s and Samsung’s scope of work includes engineering, procurement, construction, commissioning, training and start-up operations for all the utilities and offsites at Duqm. A strategic investment for the Sultanate of Oman, and forming the cornerstone of the Duqm Special Economic Zone, the development occupies more than 2,000 acres and, when completed, will have a refining capacity of approximately 230,000 barrels of oil per day.
In March 2017, Petrofac has been awarded another contract for Kuwait Oil Company’s gathering centre project, GC 32, located in the Burgan oil field, south east of Kuwait.
The lump-sum engineering, procurement and construction (EPC) project, valued at approximately $1.3bn, is the first sour gathering centre to be developed in the field and will process crude oil and associated gas recovered from the Arifjan, Marat, Minagish Oolite and Burgan Wara high hydrogen sulphide fields.
Work is scheduled to be completed in mid-2020. The scope of work for GC 32 includes greenfield activities with tie-in works to existing brownfield infrastructure, and will have the capacity to produce around 120,000 barrels of oil per day together with associated water, gas and condensate.
In January 2017, Petrofac signed a contract worth close to $600mn with Salalah LPG (SLPG) to undertake the EPC of its Salalah LPG extraction project in the southern part of Oman. Petrofac’s scope of work, under the terms of the 36-month lump sum EPC contract, which will be triggered when SLPG issues to Petrofac the notice to proceed, will include construction of the liquefied petroleum gas (LPG) unit and associated facilities, including tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah.
03. Tecnicas Reunidas
There were two major downstream projects won by Tecnicas Reunidas in the Middle East during the period of 1 January 2016 to 20 August 2017.
Tecnicas Reunidas was selected in August 2017 by Duqm Refinery and Petrochemical Industries (DRPIC) to execute the project of the process units for the new refinery of Duqm in Oman. This project is part of the Omani government plan for the industrial development of the Special Economic Zone of Duqm, which includes the new grassroot refinery.
The contract was awarded on a lump sum turnkey basis to the international joint venture led by Tecnicas Reunidas of Spain and Daewoo Engineering and Construction of South Korea for an approximate value of $2.75bn and duration of 47 months.
This is the largest of the three packages for the refinery and includes all the process units.
The project will be developed at Tecnicas Reunidas offices in Madrid, the company being the majority partner of the joint venture with a participation of 65%.
The scope of the contract of Tecnicas Reunidas includes the engineering, supply, construction and commissioning of the following refining units: crude distillation unit (230,000bpsd), vacuum distillation units (114,000bpsd), hydrocracker unit (74,000bpsd), delayed coker unit (52,000bpsd), kerosene treatment unit (40,500bpsd), diesel hydrodesulphurisation unit (83,500bpsd), LPG treatment units (2 x 12,500bpsd), hydrogen production units (2 x 126,500Nm3/d), saturated gas unit (6,500mT/d), sour water stripper unit (2 x 44mT/d), amine regeneration unit (2 x 415mT/d) and sulphur recovery unit (3x355mT/d).
Saudi Aramco awarded the ‘Clean Fuels’ project at the Ras Tanura refinery in Saudi Arabia to Tecnicas Reunidas in December 2016. The contract was worth about $1.8bn. The contract has a duration of 48 months until the mechanical completion of the plant. The scope of this contract includes engineering, procurement, construction and assistance with commissioning in two packages. Package 1 includes isomerisation, naphtha hydro-treatment, CCR, interconnections, flare system and buildings, and Package 2 involves utilities and offsites.
Tecnicas Reunidas is an international engineering and construction company in the oil and gas, petrochemicals and power sectors, with a wide range of clients worldwide. Since 1960, the company has designed and built around 1,000 industrial plants in over 50 countries.
04. Daelim Industrial Co
Daelim Industrial Co signed an agreement in March 2017 to upgrade Iran’s Esfahan Refinery. The contract amount is $2bn, and the company will implement the project alone. The project involves adding facilities to produce high value-added products, including diesel, gasoline and LPG, to the refinery in Esfahan, Iran. Daelim Industrial Co will take charge of design, equipment purchase, construction and financial procurement arrangement. The construction period is 48 months after the construction kicks off.
Boasting the longest history in the construction industry in Korea, Daelim is a construction powerhouse that is expanding its global presence with innovation.
In August 2017, Saipem was awarded a new contract in the onshore engineering and construction sector worth appro-ximately $850mn. The scope of work comprises the construction of a system of pipelines, approximately 450km in length.
Duqm Refinery and Petrochemical Industries Company in Oman awarded the EPC 3 contract to Saipem in August 2017. This contract is for building a product export terminal at the Duqm port, dedicated crude storage tanks in Ras Markaz and an 80km long pipeline connecting crude tanks with the refinery. The contract is valued at $800mn.
Saipem is a leader in drilling services, as well as in the EPCI of pipelines and complex projects, onshore and offshore, in the oil and gas market.