Saudi Focus

Location of the Aramco HUGRS project.

Location of the Aramco HUGRS project.

Samsung wins $1.85bn Aramco EPC contract

February 2020

Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies, has been awarded a $1.85-billion contract by Saudi oil giant Aramco for its Hawiyah Unayzah Gas Reservoir Storage (HUGRS) project.

The contract was signed on January 23. Samsung Engineering received a letter of intent and also signed a contract for initial work in November of last year, the company said.

The project is located at Hawiyah, 260 km east of the Saudi capital Riyadh, and includes a gas injection facility of 1,500 million standard cu ft per day (MMSCFD); and a gas reprocessing facility of 2,000 MMSCFD.

It is designed to introduce surplus sales gas into an existing well during winter and reproduce gas to match the increase in demand during summer, it stated.

Samsung Engineering will execute the whole engineering, procurement and construction (EPC) process and expects the Aramco HUGRS project to be completed in 2023.

The scope of work includes gas injection facility with booster compressors and injection compressors, gas reproduction facility with reproduction compressors and slug catchers as well as utilities and offsite facilities, it said.

“Samsung Engineering is confident of the success of this project, based on its rich local experience in Saudi Arabia and its strong partnership with the client. Since its first entry into Saudi Arabia in 2003, Samsung Engineering has carried out more than 30 projects worth about $15 billion, half of which are Aramco projects,” it said.

On the big win, president and CEO Sungan Choi said: “Samsung Engineering is honoured to receive this contract and believes that our previous regional experience, engineering excellence and partnership with the client led to this order.”

“Continuing to provide safe and quality projects, Samsung Engineering will ensure that this project will leave a mark in Saudi Arabia and will lead to build on our position in the Middle East overall,” he added.  

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