Takreer strikes deal for oil refinery

Takreer, a unit of the Abu Dhabi National Oil Company (ADNOC) has signed a deal with GS Engineering & Construction to expand an oil refinery in the United Arab Emirates. The deal, worth US$3.1 billion is the biggest plant order ever awarded to a single South Korean builder.

According to The Korea Times, company officials have said tha, under the order with Takreer, GS E&C will add a plant to the crude oil refinery facilities in Ruwais, about 250 kilometers west of Abu Dhabi, by January 2014.

Further deals

This order comes after another Korean builder struck an order with Abu Dhabi Gas Industries (GASCO) last week to build a US$1.2 billion gas plant in Ruwais.

Also, it comes at a time when Korean construction firms have been winning contracts from Abu Dhabi, capital of the UAE, the world's fourth-largest OPEC oil producer, in the wake of a recovery in oil prices.

SK Engineering & Construction said on Wednesday that it had won a US$2.1 billion plant order from Abu Dhabi to expand the Ruwais oil refinery - the same facility that GS E&C has been commissioned to improve.

The two contracts together aim to hike the site's crude oil refining capacity by 417,000 barrels per day, according to ADNOC.

Separately, Samsung Engineering last week won a US$1.2 billion fertilizer plant project from Fertil, a unit of ADNOC, while Hyundai Engineering & Construction also won a US$1.72 billion deal from GASCO to build sulphur storage and wastewater treatment facilities.

Earlier in the year, STX Construction won a US$180 million deal for the Nurai Island Development Project, a mega maritime resort complex in Abu Dhabi, which was one of the first large-scale orders secured by Korean firms since their overseas plant construction started to pick up again.

"Local builders saw a sudden drop in orders in the second half of last year as many oil-rich countries in the Middle East began holding off or canceling projects," said an official at the International Contractors Association of Korea.

However, he said that a rebound in oil prices and hopes for a general recovery in the global economy are going to encourage major refiners to improve and expand their facilities.

 

 

Related News:

Refining operations |Walking a refine line |Taking an integrated approach

Like this article? Get the RSS feed:

blog comments powered by Disqus