PETRONAS Carigali Sdn Bhd has awarded a US$770 million (RM2.4 billion) contract to Samsung Engineering to build an oil and gas terminal in Sabah.
The plant, which will produce 300,000 barrels of oil and 1.25 billion cubic feet of gas per day, will account for 40 per cent of Malaysia's crude oil production.
Samsung Engineering president and chief executive officer Park Ki-Seok said the contract reflects the company's excellent project performance and the clients' trust in the hydrocarbon plant sector.
"With expanding market share in the GOSP (gas oil separation plant) field and about US$50 billion (RM157 billion) invested annually, we plan to continue our drive to diversify our market and products in all upstream hydrocarbon fields such as offshore projects," Park said in a statement.
For the Sabah project, Samsung Engineering will lead the engineering, procurement, construction and commissioning work with local partner NCSB Engineering.
The plant is expected to be mechanically completed in December 2013.
Park said Samsung Engineering has successfully executed an ethylene project in Malaysia, gas plants in Thailand's Songkola and a PVC (polyvinyl chloride) plant in Vietnam for Petronas.
"Samsung has had a lot of experience in gas separation plants and oil facilities in the Middle East, Africa and Southeast Asia, and plans to continue its expansion into the GOSP hydrocarbon upstream sector with the Sabah oil and gas terminal," he added.
The company was ranked 35 in the recently published 2010 list of Top International Contractors (based on overseas revenue) by Engineering News Record. It made a significant jump, moving up by 18 spots from 2009.
