Samsung Engineering, a South Korean engineering and construction company, has won an $80.7 million joint project from Abu Dhabi National Oil Co. (ADNOC) for a multibillion-dollar gas development project in the United Arab Emirates (UAE). The project involves the construction of a gas processing facility jointly with Technip in France and Maire Tecnimont in Italy, and a pre-construction contract has been signed.
The pre-construction contract is for the ADNOC Hail & Ghasha gas development project, and it involves Samsung and the other two companies performing engineering, procurement, and construction (EPC) cost estimations for onshore facilities to process oil drilled in ADNOC’s Hail and Ghasha fields. The three companies will estimate the costs required for the mega-project, which is estimated to be around $6 billion.
The Hail and Ghasha Project aims to transport natural gas from an offshore platform to an onshore treatment facility in Manayif, which is located 250 km west of Abu Dhabi. The gas will be treated to remove acid gases such as sulfur. Samsung Engineering’s stake in the PCSA contract is $27.2 million.
If the joint venture (JV) completes the implementation of the PCSA contract by July 2013, bidding for the main EPC contract is expected to proceed in the second half of that year. It seems likely that the JV will win the main contract for the Hail and Ghasha Project.
