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Samsung harvests $1.9 billion Russian contracts in Iraq

Lukoil awarded $1West Qurna Phase 2 to Samsung Engineering 

Samsung Engineering officially signed a contract, worth approximately $1 billion, with LUKOIL Mid-East Ltd. (Lukoil) for the development of the West Qurna Phase 2 Contract Area and thereafter to 

provide assistance to LUKOIL with its carrying out of the commissioning and start up.

This engineering contract covers:

Project Management Consultancy (PMC)

Engineering, procurement, supply, transportation, construction, pre-commissioning (EPC)

These contracts include the design and execution of the:

 – Oil Gathering System

 – Central Processing Facilities

 – Water Supply System  

The Facilities to be built in the southern part of Iraq near Basra city for the development of the West Qurna Phase 2 oil field and will process 400,000 b/d of oil and gas.

Samsung Engineering will execute the contract on a lump sum turnkey (LSTK) basis.

The contract is an important milestone for Samsung Engineering because it is the company’s first deal with LUKOIL, Russia’s largest private oil company, and this project will add Iraq as a new geographical market for Samsung Engineering.

The project is expected to be completed within 29 months.

Samsung Engineering in the lead for Gazprom Badra CPF-2

With a bid below $900 million Samsung Engineering is leading the competition for the new Central Processing Facility (CPF-2) package of the Badra Oil field Development, ahead of Petrofac and Saipem

The Gazprom Badra oil field is located in the Wassit Province at the Southeast of Iraq.

The Badra oil filed stakeholders are Gazprom, the operator with 30% share, then KOGAS with 22%, Petronas with 15%, TPAO with 7.5%

Technip had completed the FEED on first half 2011.

In February 2012, Gazprom had awarded Petrofac for the EPC contract, valued at $329 million, to build the first central oil gathering & treatment station.

This Samsung Engineering package includes:

 – Gas treatment station with a capacity of 1.5 billion cm/y

 – Water injection

 – Three crude oil processing trains

Starting the construction of the oil gathering & treatment station and further development of oil field infrastructure is another key step in Badra Oil field Development

By the second half of 2013, Gazprom expects to begin producing oil at Badra with daily production reaching the peak of 170,000 b/d by 2017 or approximately 8.5 million t/y of oil.

The Badra oil field development project is scheduled to run for 20 years with the possibility of extending it for a further 5 years.

Gazprom and its partners estimate capital expenditure in the Badra oil field project at $2 billion.

Samsung Engineering publishes excellent results on first quarter 2012

Samsung Engineering announced financial results for 2012 first quarter with 2,662 billion KRW in revenue, 189 billion KRW in operating profit  and 144 billion KRW in net profit.

Samsung Engineering noted revenue of 2,662 billion KRW, highlighting 46.2% growth from the same period in 2011.

The steady growth of Samsung Engineering is due to extensive revenue from overseas projects at 2,185 billion KRW with 72.6% increase compared to 2011 first quarter revenues. 

Overseas projects accounted for 82% of total revenue, demonstrating sustainable growth in overseas projects.

Hydrocarbon plant projects accounted for 68% of total revenue and the non-hydrocarbon plant projects accounted for 32% of total revenue. 

The company also reported its order backlog at 19 trillion KRW. This backlog is significant in that it is two years worth of backlog based on 2011 revenues.

In first quarter for 2012, Samsung Engineering has received 1,958 billion KRW in new orders in and outside of Korea to which West Qurna 2 contract from Lukoil has a major contribution.


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1 Comment to “Samsung harvests $1.9 billion Russian contracts in Iraq”

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