Daewoo E&C Nabs MOU for $10B PDVSA Project

SEOUL - Daewoo Engineering & Construction Co. said Friday it has signed an initial agreement, in a consortium with STX Construction Co., for an estimated $10 billion construction project with state-run oil company Petroleos de Venezuela, or PDVSA.

The project consists of three parts. In the first part, an oil pipeline in the Orinoco belt and tank farms in Junin and Carabobo will have to be built, a spokesman for Daewoo E&C said by phone.

The second part comprises the constructing an oil storage and shipment terminal in the coast of Araya, while a solids storage and shipment terminal in another location along the Orinoco belt will have to be built in the third part, the spokesman said.

Daewoo E&C plans to establish a 50-50 joint venture with STX Construction as soon as possible, and aims to sign a contract with PDVSA within the first half of this year.

The spokesman, however, said the value of the project may be adjusted later, as it is in the initial stages.

The announcement comes after Venezuela oil minister Rafael Ramirez's visit to South Korea earlier this week.


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