Hyundai E&C, Samsung Eng. partner with Saudi Aramco

South Korea’s Hyundai Engineering & Construction (Hyundai E&C) Co. and Samsung Engineering Co. were selected as official partners of Namaat, the Saudi Arabian Oil Company (Aramco)’s industrial investment program on Tuesday.    

Under the partnership, the two Korean firms can obtain incentives in bidding procedures or receive orders from the Saudi Arabian state-run oil company's petroleum and chemicals businesses.

Hyundai E&C will set up a joint venture with Riyadh-based contracting firm Al-Rashid Trading & Contracting (RTCC) Co. The JV will carry out Aramco’s businesses such as supporting Saudi Arabia’s local engineering, procurement and construction (EPC) companies, transferring technologies and creating jobs for local professionals.

Hyundai E&C and Aramco’s partnership follows the two parties signing a memorandum of understanding for Namaat’s core projects across the sustainability, digital, industrial, manufacturing and social innovation sectors in September 2021.  

Aramco has recognized Hyundai E&C’s expertise in EPC, proven through the Korean firm’s large plant construction projects in Saudi Arabia, a Hyundai E&C official said.

Hyundai E&C’s first project for Aramco was the Yanbu natural gas liquid (NGL) sea terminal construction in 1979. The Korean firm has participated in a number of Aramco’s projects including in the Karan gas field, a gas oil separation plant in Marjan and central processing facilities in the Khurais oil field, the second-biggest oil field in Saudi Arabia. Last November, a joint venture between Hyundai E&C and Hyundai Engineering Co. won a 2 trillion won ($1.5 billion) order from Aramco for the Jafurah unconventional gas field development.      

Hyundai E&C is expecting that the construction industry in the Middle East will recover thanks to oil price hikes. The Korean firm will solidify its position in the petroleum and chemical plant construction market in the Middle East for the long term, the Hyundai E&C official said.

Samsung Engineering will also found a JV with investment firm Al Rushaid Petroleum Investment Company (ARPIC). The JV will contribute to Saudi Arabia's economy by training EPC experts, creating jobs and cooperating with local firms, Samsung Engineering said.

Write to Eun-Ji Shim and Jeong-Min Nam at summit@hankyung.com
Jihyun Kim edited this article.