In Brief

Saipem seals $750m EPC contract for Saudi gas project

Saipem, a leading engineering and construction company, has been awarded a $750-million contract by global energy giant Aramco for the Jafurah gas project in Saudi Arabia.

The engineering, procurement, construction (EPC) contract includes the engineering, supply of materials, construction, and commissioning of approximately 835 km of pipelines for the transportation of gas, condensate and production water, said Saipem.

The project involves the construction of a hydrocarbon collection system and the transport of gas and condensate to the new Jafurah plant, in the Eastern Province of Saudi Arabia.

As per the deal, Saipem will also build a system to transport water associated with the separation of the treated gas.

On the contract win, CEO Francesco Caio said the award of this new project from Aramco consolidates a long-standing relationship and Saipem’s strategic positioning in the Middle East.

Headquartered in Italy, Saipem is an advanced technological and engineering platform for the design, construction and operation of safe and sustainable complex infrastructure and plants. It operates in over 60 countries around the world with 32,000 employees from 130 different nationalities.


Korean builders coalition Jungheung buys Daewoo E&C

Jungheung Group, comprising a coalition of 62 construction companies, has signed an agreement to acquire a 50.75 per cent stake in Daewoo Engineering & Construction (Daewoo E&C), a leading Korean builder with a major presence in the Middle East region, said media reports.

The shares had been held by the Korea Development Bank (KDB), which was forced to buy it back in lieu of debt repayments after a failed acquisition by the Kumho Asiana Group in the wake of the 2008 financial crash, reported Korean news site, Pulse.

KDB had formed a team to manage the long-sought sale of Daewoo E&C, it stated. The deal comes five months after Jungheung was selected as the preferred bidder in July.

Founded in southern city of Gwangju in 1983, Jungheung has established its reputation through public housing projects such as redevelopment for new towns in Gwangju and surrounding provincial regions, largely relying on orders by Korea Land and Housing Corp.

The group created as many as 34 affiliates in order to net as many orders as possible from the state housing firm. With this acquisition, Jungheung has become the third largest contractor in South Korea. The company will be retaining all of Daewoo’s staff, and will not interfere in its management decisions. It will focus on improving Daewoo E&C’s balance sheet and promoting the smooth operations of its foreign projects, reported Business Korea.


Alkhorayef lands Jeddah stormwater maintenance contract

Saudi-based Alkhorayef Water and Power Technologies Company said it has been awarded a SR132 million ($35 million) storm water maintenance contract by the Jeddah Municipality.

As per the contract, Alkhorayef Water and Power Technologies Company will perform the works related to the maintenance and optimisation of the storm water networks and ground water level reduction networks in the south and east of the Saudi city for a three-year period, said the company in its filing to Saudi bourse Tadawul.

The Jeddah win comes close on the heels of a seven-year contract from National Water Company to one of Alkhorayef’s subsidiaries for the operation and maintenance of the water and environmental treatment services in the central cluster (Riyadh Region).

The contract worth SR358 million was clinched by Erwaa Water Company, a consortium of Alkhorayef Water and Power Technologies (which has a 49 per cent stake) and French water and energy management company Veolia.


Hitachi Energy wins Abu Dhabi project work contract

Hitachi Energy, a global technology leader, has secured a major order for the first-of-its-kind sub-sea power transmission network in the Mena region that advances a sustainable energy future for Abu Dhabi.

The contract was awarded by Samsung C&T Corporation, one of the world’s largest engineering and construction companies, to connect Adnoc’s offshore operations to the UAE-owned onshore power grid operated by Abu Dhabi National Energy Company (Taqa).

According to Hitachi Energy, the group’s HVDC Light technology and Mach digital control platform will enable the transfer of cleaner and more efficient power from the mainland to power Adnoc’s offshore production operations, enabling a carbon footprint reduction of its offshore operations by more than 30 per cent.

With a capacity of 3,200 megawatts (MW), the two HVDC links will be by far the most powerful power-from-shore solution in the Mena region to date. It is also the first HVDC power-from-shore solution outside Norwegian waters.