Samsung Eng. wins ADNOC’s $80.7 mn joint project

South Korea’s Samsung Engineering Co. has won a $80.7 million joint project from Abu Dhabi National Oil Co. (ADNOC) for multi-billion-dollar gas development in the United Arab Emirates (UAE),  the company said on Tuesday.

It was awarded the pre-construction deal to build gas processing facilities, jointly with France-based Technip and Italia’s Maire Tecnimont. 

“We received a letter of award for a pre-construction services agreement for the ADHOC Hail & Ghasha Gas Development project,” Samsung said in a regulatory filing.

Under the contract, Samsung and the two other companies will perform EPC cost estimation on onshore facilities to process oil drilled from ADNOC's fields in Hail and Ghasha.

The three companies will estimate the costs needed to conduct engineering, procurement and construction (EPC) for the mega project, UAE ADNOC Hail & Ghasha GAS Development.

Samsung will take a portion of $27.2 million for the onshore project, which will be completed by July of this year.

The project also involves offshore work to develop the gas fields in Hail and Ghasha off the Persian Gulf.

Natural gas from offshore platforms in Hail and Ghasha will be transported to onshore processing facilities in Manayif, 250 kilometers west of Abu Dhabi, to remove acid gases such as sulfur.

The state-owned ADNOC is launching the project with an aim of reducing carbon emissions and meeting the growing demand for natural gas.

The deal was announced after South Korean President Yoon Suk-yeol wrapped up a four-day state visit to the UAE on Tuesday, accompanied by some of the country’s top business executives and representatives from other Korean companies.

During his visit, the two countries signed $6.1 billion worth of preliminary agreements on joint projects in a range of areas, Seoul’s trade ministry said on Monday.

Write to Seo-Woo Jang at suwu@hankyung.com
Yeonhee Kim edited this article.