Samsung Engineering has won a $ 3.6 billion contract for the second phase of construction of the $ 8.9 billion Dos Bocas refinery in Tabasco state.
The company said it has received a letter of intent to close the contract with PTI Infraestructura de Desarrollo, a subsidiary of NOC Pemex, which owns the project and oversees it in conjunction with the Sener energy ministry.
While the first phase included engineering development and planning, as well as cost estimates for the next phase, phase 2 converts the contracts from phase 1 to EPC contracts for the construction of the project.
Samsung therefore secured two of the six packages included in the project (packages two and three). Together, the company will build a diesel hydrodesulfurization unit, a diesel hydrodesulfurization unit, a naphtha hydrotreatment unit, a naphtha reformer and a fluid catalytic cracking unit.
The news comes at a time when Dos Bocas construction has come under heavy criticism as the project deals with budget overruns, while seeing one of its main Phase 1 contractors, Kellogg Brown and Root (KBR ), withdraw because it was not able to comply with the project’s budget expectations.
KBR, which was responsible for the second and fourth packages, has been replaced by Techint and ICA-Fluor. So far, Pemex has invested US $ 933 million in the project and has executed 24%.
Defying most independent estimates, the Mexican government insisted the project would be ready by July 2022.
“This order is based on the competitiveness of Samsung Engineering, which has accumulated over a long period of time,” Samsung Engineering said in a statement. “We will successfully lead this project using our knowledge and experience in refining projects in the Mexican market.
Samsung has also partnered with Pemex for the ongoing overhaul of the company’s six refineries, carrying out work in Salamanca, Tula and Minatitlán. Pemex said earlier this month that the renovations would be completed in 2023.