Samsung Engineering said on Nov. 25 that it has received a letter of intent (LOI) for a gas project in Saudi Arabia.
Samsung Engineering received an LOI from Saudi Arabia's state-run oil company Aramco on the contract for the "Early Work" of the Hawiyah Unayzah Gas Reservoir Storage Project, which is worth US$10 million.
The contract will be converted into a main contract for EPC (Engineering & Procedure & Construction) worth about $1.9 billion in January next year when the initial obligation is completed.
The project, which will be carried out at the Hawiyah gas field zone located 260 kilometers east of Riyadh, will be a project to build 1.5 billion cubic feet of gas-injection facilities a day and 2 billion cubic feet of gas-reproducing facilities a day, which will allow idle gas to be injected into gas fields during the winter, and will be reproduced and used in the summer when demand for gas becomes high.
The order shed light on Samsung Engineering's technological competitiveness based on its solid design capabilities. Unlike the traditional method of conducting EPC bidding after the end of the FEED (Front-End Engineering Design), the project was carried out in such a way that EPC bidders participated in the initial process to present Value Engineering (VE) to the owner and FEED company, and to review the feasibility of the project.
Samsung Engineering's abundant design experience and technical skills were reportedly highly evaluated in the process.
Samsung Engineering is showing confidence in the success of the project, based on its ample regional experience in Saudi Arabia and a sticky partnership with the owner.
Since its debut in Saudi Arabia in 2003, Samsung Engineering has carried out more than 30 cases and $13 billion worth of projects, about half of which are Aramco projects.
Based on its know-how that it has accumulated for a long time, Samsung Engineering predicts that network of local partners, resource utilization and smooth communication with the owner will work in favor of carrying out the project.
"Based on our technological prowess and experience, we will further strengthen our position as a Saudi strongman and continue our reputation in the Middle East by driving the successful performance of the project," a Samsung Engineering official said.
