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Fri 30 Apr 2010 04:44 PM

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Samsung Engineering wins $1.5bn order from UAE

Korean firm bags build utilities, offsite facilities for Abu Dhabi company.

Samsung Engineering Co, South Korea’s largest engineering company, said it won a contract worth $1.5 billion from Abu Dhabi Gas Development Co as part of a construction project in the UAE.

Samsung Engineering will build the utilities and offsite facilities in Shah, 180 kilometers (112 miles) southwest of Abu Dhabi, by August 2013, the Seoul-based company said in an e- mailed statement today.

Samsung Engineering and rivals including Korea Electric Power Corp. may win as much as a record $70 billion in overseas orders this year, according to estimates this month from the Ministry of Land, Transport and Maritime Affairs. That target would be a 51 percent increase from last year’s $46.3 billion in contracts as higher energy prices encourage oil companies in the Middle East and Africa to invest more in building new refineries.

The Shah development is estimated to cost $10 billion, Saif Ahmed al-Ghafli, chief executive officer of Abu Dhabi Gas Development, said in March. The project will process 1 billion cubic feet (28 million cubic meters) of sour gas, or natural gas containing significant amounts of hydrogen sulfide, a day into more than 500 million cubic feet of fuel and 10,000 tons of sulfur, he said.

Samsung Engineering gained as much as 5.2 percent, the biggest climb in two weeks, to 111,500 won and traded at 110,000 won as of 10:21 a.m. in Seoul. The stock has advanced 1.4 percent this year, compared with a 3.7 percent rise in South Korea’s Kospi index.

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