Samsung Engineering awarded all four packages for Shaybah NGL plant project

abarrelfullabarrelfull wrote on 22 Mar 2011 08:00
Tags: contracts samsung saudi-arabia saudi-aramco

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On March 21st, Samsung Engineering officially inked a $2.76 bn USD contract for the Shaybah NGL (Natural Gas Liquid) project at a signing ceremony held at Saudi Aramco headquarters in Dhahran. The ceremony was attended by key figures, such as Saudi Aramco's Executive Director of Project Management Majid Yousif Mugla and Samsung Engineering's President & CEO Park Ki-Seok.

This NGL facility will be located 800 km south east of Dhahran in Shaybah, and is expected to secure feedstock supplies for the kingdom's hydrocarbon business. The complex will produce 750,000 barrels of oil per day, process gas of 2,400 MMSCFD and recover 200,000 barrels of NGL per day.

Samsung Engineering will provide engineering, procurement and construction for all four units in this plant complex on a lump-sum turn-key basis. Package #1 is the inlet & gas treatment facility,to remove impurities such as sulfur from the gas. Package #2 is the NGL recovery and utility facilities which will recover NGL from the gas. Package #3 is the cogeneration plant to produce power for the facility. Package #4 is the increased gas handling facilities, which are oil and gas separation plants (GOSP). Samsung Engineering is scheduled to achieve mechanical completion by June 2014.

Samsung Engineering's reputation in the Middle East has improved greatly over the past decade after securing and successfully executing several large-scale projects in Saudi Arabia, the UAE and Bahrain. The Shaybah project was a significant win for Samsung Engineering as it is the 4th Saudi Aramco project received since 2007, and also because it is a rare case for a client to award all packages to one EPC contactor. Most large scale projects are usually divided into packages to be delegated to different contractors for the purpose of minimizing project risk.

Following the award of Malaysia's Petronas gas & oil separation project, and power plants from Saudi Arabia's Aramco and Mexico's CFE, the Shaybah project will also involve the execution and expertise of different plant sectors such as GOSP and Co-generation. The Shaybah contract confirms Samsung Engineering's leadership in the promising Hydrocarbon, Industrial and Infrastructure global market.

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