The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman EUN, Sung-soo; “Korea Eximbank" or “the Bank”) announced that the Bank would extend USD 367 million in project financing (USD 257 million in loan and USD 110 million in guarantee) to finance a refinery facilities modernization project in Bahrain which is awarded to Samsung Engineering.
The project, implemented by Bahrain Petroleum Company (BAPCO), is the largest national project in Bahrain, with a total project cost of approximately USD 6.6 billion.
Samsung Engineering has formed a consortium with Italy-based Technip and Spain-based Tecnicas Reunidas and won a USD 4.2 billion EPC (Engineering, Procurement, and Construction) contract.
Since Samsung Engineering is in charge of designing core facilities while a number of Korean SMEs are expected to supply equipment and services, the project can serve as a great opportunity for Korean SMEs making entry into the Middle East market.
Currently, 12 Korean SMEs including Doohan Tech are working on a detailed design for the refinery with Samsung Engineering, and 37 Korean SMEs, including Wooyang HC and KHE, will supply equipment for this project.
A Korea Eximbank official said, "From the very beginning of the bidding process, we have been in close talks with BAPCO and clearly expressed our intention to support the company, thus contributing to the award of the large-scale project to Korean companies." The official added, “This is our first financing for BAPCO, and we expect that the deal will unlock continued opportunities for domestic companies to win more orders from BAPCO’s petrochemical projects going forward."
Upon completion, BAPCO aims to expand the production capacity of its existing refinery facilities to 380,000 barrels per day. By refurbishing the facilities, the company will improve profitability by optimizing its product lineup to respond to changes in the refinery product market.