Samsung Engineering has signed an additional contract in an oil refining project underway in Mexico, raising expectations for a second-phase EPC main contract transition.
Samsung Engineering concluded a contract on May 4 (local time) to build a pile for the "Dos Bocas Refinery Project" in Mexico.
The pile construction work is to drive piles on the ground where flattening work is completed, and it will be able to withstand the load of high-weight plant units.
This contract will be a pile operation for some plant units that have been designed, with about 4,500 out of 10,500 piles to be built first, with an eight-month contract period and a contract value of about $60 million (approximately 70 billion won). The deal will also increase the cumulative amount of contracts to $310 million.
The project is under way after Samsung Engineering's Mexican subsidiary won an order from PTI-ID (PEMEX Transformacion Industrial Infraestructura de Desarrollo), a subsidiary of Mexico's state-run oil company PEMEX, in August last year.
It consists of the first stage, which is equivalent to "basic design and some detailed design," and the second stage, which is equivalent to "residual detail design and procurement, construction and test-driving."
Expectations for the second-phase EPC main contract will also be higher with the deal. The project is a state-run project that Mexico shows a strong will to the extent that the Mexican president directly orders a steady progress regardless of the COVID-19 crisis.
The pile construction contract is also a separate order for part of the second phase of the project to proceed quickly, which can be expected to be converted by the end of this year.
An official of Samsung Engineering said, "With the full support of the Mexican government, the project is proceeding as scheduled. We will make every effort to proceed with the project based on technology and experience so that the second phase of the project can proceed as scheduled."
Meanwhile, the project, carried out in the Dos Bocas region of Tabasco State, eastern Mexico, is to build facilities to produce 340,000 barrels of crude oil a day.
Of the total six packages, Samsung Engineering is carrying out the first stage of package two (four units including diesel water-collecting desulfurization facilities) and package three (medium-quality oil catalytic cracking process facilities).
