On October 18, Samsung Engineering formally signed a $770 million Sabah Oil & Gas Terminal (SOGT) project contract with PCSB (Petronas Garigal Sdn Bhd), a subsidiary of Malaysia's National Oil Company, Petronas.
After being awarded the contract in September, the official signing ceremony was held on Monday in Kuala Lumpur, Malaysia, at the Petronas Twin Towers. CEO Mr. Datuk Abdullah Karim from PCSB, Chairman Mr. Abdul Hamed from NAIM and Samsung Engineering's CEO Park Ki-Seok along with 17 other relevant officials were in attendance.
The plant will be built in the Sabah region in Malaysia, with a capacity of 300,000 BPSD of oil and 1,250 MMSCFD of gas, which will account for 40% of Malaysia's crude oil production.
Samsung Engineering will lead Engineering, Procurement, Construction and Commissioning work with local partner NCSB Engineering and will form an EPCC Alliance Integrated Team with the client. The plant plans to be mechanically completed in December 2013.
The SOGT project is considered a mega project, as it will account for 40% of Malaysia's oil production at 300,000 barrels of oil per day (BPSD) and 1.25 billion cubic feet (MMSCFD) of gas. Samsung Engineering was trusted with heading this important national project as a result of successful completion of an ethylene project in Malaysia, gas plants in Thailand's Songkola and a PVC plant in Vietnam for Petronas. Samsung has had an extensive track record in gas separation plants and oil facilities in the Middle East, Africa, South East Asia and plans to continue its expansion into the GOSP hydrocarbon upstream sector with the Sabah Oil and Gas Terminal.
In regards to the signing of the new project, Samsung Engineering's CEO Park Ki-Seok stated, "As we deliver this large national project, we hope it will promote the local employment in Sabah and revive its oil industry and economy." "Our plan is to continue this long-term partnership with Petronas and upgrade our business plan and vision for the future."
ENR (Engineering News Record) recently published its 2010 list of Top International Contractors (based on overseas revenue), with Samsung Engineering ranked as number 35. The company has made a significant jump, after moving up by 18 spots from 2009. On top of its strength in the hydrocarbon sector, this year Samsung Engineering has diversified its portfolio to new sectors such as power plants, steel mills, and water treatment plants.