Wins Contract to Boost Crude Oil Production in the World’s
Largest Oil Field
- SAE-A has beaten out competitors for a contract to build water
injection facilities in Rumaila Oil Field from the BP plc
- Solely responsible for the entire process including design,
procurement, construction, operation and maintenance
- Aiming for post-acquisition synergies in countries around the
world where Global SAE-A Group has entered
On December 16, SAE-A STX
ENTECH (CEO: Ahn Seok-Hwan) announced that it has signed a contract with
British Petroleum (BP) to build facilities to boot crude oil production.
Accordingly, STX will be put in sole charge of the whole affairs, i.e. EPCC
(engineering, procurement, construction and commissioning), for produced water
re-injection facility in a large-scale oil field under construction in Rumaila,
Iraq.
Produced water is a
by-product generated during crude oil production in an oil field, which is
injected back into the oil field to boost crude oil production due to the
pressure. Water injection is controlled by the “produced water re-injection
facilities” won by STX from BP.
Although most of plant
companies are EPC contractors (engineering, procurement and construction), at
this time, STX has won a turn-key project in which they will also be
accountable for commissioning. The world’s leading EPC contractors handed in a
bid for this KRW 120B contract, but they have lost to SAE-A STX ENTECH because
BP was fascinated by STX’s technological prowess and management capabilities,
as well as rich experience in winning orders for energy facilities in Iraq. The
contract includes an option for four-year O&M (operation & maintenance)
services after construction.
Rumaila Oil Field is one
of the largest oil fields in the world, which was critical in the 1990 Gulf War
and one of the reasons for conflict between Iraq and Kuwait. BP has been developing
the Rumaila Oil Field since 2009 with its core oil field producing 1.2M barrels
of crude oil per day.
As it has been recognized
for its technological prowess by BP, the world’s leading oil company, STX also
enhances its position as a total service provider encompassing basic design of
plant facilities and overall O&M. They expect
to win similar projects from other oil fields under development.
“Since our company was acquired by Global SAE-A, owing to the
active support of the group, we have been winning several orders for renewable
energy and environmental facilities,” said Ahn Seok-Hwan, STX’s CEO. “As we
have been recognized for our prowess in this field, we will achieve market
diversification by aggressively targeting overseas markets to revitalize the
recently stagnant overseas plant construction market.”
In addition to Iraq, STX
is benefiting from synergy with affiliates in SAE-A group referring to full-scale
market research to make inroads into Southeast Asia and Central America, where
SAE-A has also entered.
Excelled in the green
facility/energy field, STX has recently won huge projects for dust collection
facilities at Gwangyang Ironworks, denitrification/desulfurization facilities
at thermal power plants, and solar panels for homes in rural areas of Nicaragua.
* * *
Engineering, procurement
and construction (EPC) contracts are a type of turnkey contract used to
understake construction works on large-scale and complex infrastructure
projects, under which a contractor is obliged to deliver a complete facility to
a developer who needs only “turn a key” to start operating the facility by performs engineering, procurement and
construction management services. STX Entech has been recognized as the leading
EPC contractor, winning orders for EPC projects both at home and abroad,
including Bukpyeong Thermal Power Plant and power plants in Iraq, even during
the court receivership prior to acquisition by Global SAE-A Group.