Won an Order for USD2 billion worth Oil Refinery Plant from the Philippines, the Biggest Project in Southeast Asia

abarrelfullabarrelfull wrote on 27 Sep 2012 14:07

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Daelim Industrial announced that it received the Notice to Proceed (NTP) for the Petron Refinery Master Plan Phase 2 (RMP-2) project valued at about USD2 billion from the Philippines on November 5, 2011. The RMP-2 project, ordered by Petron Corporation, is a mammoth project to produce high value-added oil products by extensively modernizing existing refinery plants located in Limay, Bataan, about 150 kilo meters from the southwest of Manila.

Prior to the NTP reception, Daelim has received and conducted preceding soft works including process integration, basic design engineering, procurement service and offshore procurement for the RMP-2 project since this April. Therefore, the NTP allows Daelim to independently carry out EPC business including detailed design & engineering, procurement and construction. This project will be also changed to a lump-rum turnkey base contract in November.

In particular, this project demonstrates the largest amount among projects received from Southeast Asian countries. Daelim has participated in preceding soft works such as basic design engineering and process integration service that makes it possible to optimally operate facilities by integrating various licensors’ technologies, as well as existing EPC businesses. The soft works before main EPC processes with high technological entry barriers have been recognized as high value-added businesses in which some global EPC leaders are able to participate.

This project is also expected to allow Daelim to establish a solid foothold in the Philippine plant construction market. Only Daelim among Korean construction companies has been conducting various businesses in the Philippine, and it has successfully completed oil refinery plant projects such as Petron FCC project and Petron BTX in the region. These achievements have been highly rated for competitiveness by project owners, which contributed to winning this project by optional contract. Daelim is conducting the JG Summit NCC project in the Philippines, the first ethylene plant in the nation.

In 2011, Daelim’s new orders from overseas markets valued at KRW6.0412 trillion as of November, which surpassed the company’s yearly target of KRW6 trillion. Major projects include the above RMP-2 project, KRW2 trillion worth Saudi RTIP (Ras Tanura Integrated Project) and KRW1.4 trillion worth Saudi Shoaiba II combined cycle power plant project.

Yoon Kim, head of plant business division, said, “This achievement results mainly from our successes in ultra large projects such as Saudi Kayan Polycarbonate project and Saudi NCP project. Based on our competitive edge in EPC businesses, we will continue to expand our domain to high value-added sectors such as operation & maintenance and equity-based EPC PLUS as well as preceding soft works.”

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