(EnergyAsia, February 17 2012, Friday) — Singapore’s Rotary Engineering Limited said its 51%-owned joint venture company, Petrol Steel Co Ltd, has secured a US$34 million engineering, procurement and construction (EPC) contract to build 17 field storage tanks in Saudi Arabia.
The contract, Rotary’s fourth in the kingdom now worth a total of US$848 million, relates to the US$1.23 billion Shoaiba II Combined Cycle Power Plant Project in Shoaiba located 120 km south of the Red Sea city of Jeddah.
The contract was awarded by South Korea’s Daelim Group, the main contractor for the 1,238MW combined-cycle plant owned by the Saudi Electricity Co.
Rotary, whose partner is Saudi Arabia’s Rafid Group, will start work on the fuel oil tanks in June, targeting completion around the middle of 2013.
Chia Kim Piow, Rotary’s chairman and managing director, said:
“This is a strategic win for us and is another affirmation that our strategy to capitalise on our presence in Saudi Arabia is bearing fruit. We are hopeful and optimistic that more opportunities will open to us as we continue to fortify our presence in Saudi Arabia.”
The company is gunning for another major contract to build storage tanks for Saudi Arabia’s 400,000 b/d export-oriented refinery in Jizan.
Rotary, a leading provider of engineering, procurement, construction and maintenance services serving the oil, gas and petrochemical industries, entered the Middle East market in 2006. It secured its biggest contract in 2009 when it was awarded a US$745 million EPC contract to build a refinery tank farm in Saudi Arabia for Saudi Aramco
Total Refining and Petrochemical Company (SATORP), a joint venture between Saudi Aramco and France’s Total for its Jubail refinery.