Algeria: Samsung Engineering Lands Large Oil Refinery Project

South Korea’s Samsung Engineering and Spain’s Técnicas Reunidas joint venture won a USD 3.7 billion contract for the Sonatrach Hassi Messaoud (HMD) refinery project in Algeria. The refinery plant will process 110,000 barrels of crude oil per day and will be executed on an Engineering, Procurement, Construction and Commissioning (EPCC) lump-sum turn-Key basis for approximately 52 months.

The project is located at Hassi Messaoud, 600km southeast from Algeria’s capital Algiers.

The signing ceremony was attended by Kamel Eddine Chikhi, Sonatrach President & CEO, Juan Lladó Arburúa TR Vice Chairman & CEO and Sungan Choi, Samsung Engineering President & CEO. The scope of work includes Process & Utility Unit, Crude Distillation Unit (CDU)/ Vacuum Distillation Unit (VDU), Continuous Catalytic reforming (CCR) Unit, Isomerization, Naphtha Hydro-treating (NHT) Unit, Hydrodesulfurization (HDS) Unit, Hydrocracker Unit (HCU) as well as Utility Systems.

Sonatrach roadmap is to invest heavily in petrochemicals as well as in oil and gas development, which will give Samsung Engineering the opportunity to be part of Sonatrach’s value chain from the very beginning of the process.

In addition, Samsung Engineering will execute the HMD refinery project with Técnicas Reunidas as JV partner, who is also cooperating in other on-going project. The mutual familiarity with TR reduces risk and maximises synergy for the HMD refinery project.

Samsung Engineering’s President & CEO Sungan Choi said: “Samsung Engineering is honored to be trusted again by Sonatrach as a contractor. Our expertise in refinery projects and know-how of the region, will secure a state of the art refinery for Algeria.”