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Comment Business & Economics

Samsung Engineering signs contract for major refinery revamp with Luberef  

By Gerald Ondrey |

Samsung Engineering Co.(Seoul, Korea; www.samsungengineering.co.kr) was formally awarded the Yanbu petroleum-refinery expansion project from Luberef (Saudi Aramco Lubricating Oil Refining Co.) on October 20th in Dhahran, Saudi Arabia. Luberef’s president and CEO Ali A. Al-Hazmi met with Samsung Engineering’s executive vice president of marketing Kim Dong Woon to ink the $871-million deal. Luberef, a joint venture between Saudi Aramco (70%) and Jadwa Industrial Investment Co. (30%), has commissioned Samsung Engineering for the engineering, procurement, construction and commissioning of the refinery on a lump sum turn-key basis. Mechanical completion is slated for July 2015. The scope of work includes a hydrocracking unit (23,000 bbl/d), ISO-dewaxing complex (19,000 bbl/d), a hydrogen-manufacturing sulfur-recovery complex (95 ton/d) among other additions such as substations and cooling towers. The expansion of the refinery will boost the overall capacity from 280,000 ton/yr to 710,000 ton/yr of base oil. This award follows several important large-scale Saudi Aramco projects currently being executed by Samsung Engineering, such as the Shaybah Natural Gas Liquids complex and Wasit Cogeneration power plant.  
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