McDermott Wins 25-tank Saudi Contract from Samsung



McDermott Wins 25-tank Saudi Contract from Samsung
Samsung Engineering Saudi Arabia has awarded McDermott a fixed lump sum contract for a total of 25 storage tanks.

Samsung Engineering Saudi Arabia Co. Ltd. has awarded McDermott International, Inc. a fixed lump sum contract for engineering, procurement and fabrication of 23 CB&I storage tanks and modification of two existing tanks in Jubail, Saudi Arabia, McDermott announced Monday.

“McDermott and Samsung have a long track record of successful collaboration and safe execution in the Middle East,” Linh Austin, McDermott’s senior vice president for the Middle East and North Africa, said in a company statement emailed to Rigzone. “Our extensive experience in Saudi Arabia combined with our unparalleled technical competency in the storage sector uniquely position us to deliver this project.”

According to McDermott, work on the storage tanks – for the Jubail United Petrochemical Co. (JUPC) Ethylene Oxide (EO)/Ethylene Glycol (EG) Plant No. 3 – will primarily be done from Saudi Arabia using “local capabilities and facilities.” In addition, it stated that work on the “sizeable” contract should begin immediately. JUPC is an affiliate of Saudi Basic Industries Corp. (SABIC).

Although it did not provide specifics on the contract amount, McDermott stated that a “sizable” contract ranges in value from $1 million to $50 million.

In late December 2017, Samsung Engineering announced that it had received a contract to build a $700 million EO/EG plant at Jubail to produce 700,000 million tons per annum of monoethylene glycol (MEG). Samsung stated at the time that construction at Jubail Industrial City, located in eastern Saudi Arabia north of Dammam, should conclude in 2020.



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