Despite the economic recession, Samsung Engineering achieved the largest plant order to be given to a Korean contractor from North Africa's resource abundant country Algeria, signaling new order momentum in the global plant market.
Samsung Engineering (President & CEO Yeon-Joo Jung) stated that on July 4th, a contract signing ceremony was held with Algeria's National Oil Company Sonatrach to seal a 2.6bn USD contract (incl. VAT) for the modernization of its oil refinery, located in the Skikda region.
From the crude distillation unit to the aromatic facilities, the contract covers most of the refinery complex. Through its rehabilitation and modernization, the largest refinery plant in Algeria will have its refining capacity increased up to 330,000 BPSD. In addition, the contract includes new plants for the production of Isomerate (700,000 MTPA), Para-Xylene (220,000 MTPA) and Benzene (200,000 MTPA).
Within a 36-month construction period in total, Samsung Engineering will perform engineering, procurement and construction services on a lump-sum turn key contract basis, with bulk materials and construction costs to be settled on a reimbursable contract basis.
Samsung Engineering was invited to bid, which also involved other leading European engineering companies, based on a successful history of projects executed without a single delay in more than 20 plant construction projects. Also, the market recognized Samsung Engineering's capability of successfully delivering large-scale projects. This project execution capability background was analyzed as instrumental in deciding the
contractor for this order.
Samsung Engineering's President & CEO Yeon-Joo Jung states, “This order is a very significant in that it establishes a strong foundation with Algeria's National Oil Company Sonatrach and the African market." “With our extensive project capability close to reaching 10 bn USD per year, we will be able to increase our revenue by 30% annually," stated the CEO.
Algeria has the 14th largest crude oil reserves and 8th largest gas reserves in the world and is considered an emerging market in the development of resources and infrastructure-related industries. Specifically, Sonatrach is on track for large-scale investments in oil, gas and energy projects which has resulted in world-wide attention by global EPC companies.
Samsung Engineering plans to achieve this year's target of 7 trillion KRW in new orders and
4 trillion KRW in revenue and strengthen its marketing capabilities.