Samsung Engineering Signs Major Contract with Luberef

Samsung Engineering Co., Ltd. the first and largest engineering company in Korea, announced it had been formally awarded the Yanbu refinery expansion project from Luberef (Saudi Aramco Lubricating Oil Refining Company) on October 20th in Dhahran, Saudi Arabia. Luberef’s President and CEO Ali A. Al-Hazmi met with Samsung Engineering’s Executive Vice President of Marketing Kim Dong Woon to ink the $871 million USD deal.

Luberef, a joint venture between Saudi Aramco (70%) and Jadwa Industrial Investment Company (30%), has commissioned Samsung Engineering for the engineering, procurement, construction and commissioning of the refinery on a lump sum turnkey basis.

Mechanical completion is slated for July 2015.

The scope of work includes a hydro cracking unit (23,000BPD), ISO-Dewaxing complex (19,000 BPD), a hydrogen manufacturing sulfur recovery complex (95 t/d) among other additions such as substations and cooling towers. The expansion of the refinery will boost the overall capacity from 280,000 t/y to 710,000 t/y of base oil.

This award follows several important large-scale Saudi Aramco projects currently being executed by Samsung Engineering, such as the Shaybah Natural Gas Liquids complex and Wasit Cogeneration power plant.

At the signing, Executive Vice President Kim Dong Woon stated, “This award is a result of our expertise in delivering refinery projects and the trust and confidence earned from our key client, Saudi Aramco. We look forward to solidifying this reputation in Saudi Arabia through the Luberef project.”