Mexican government unveils winners for new oil refinery work

Samsung E&A Co

27/07/2019 03:32

MEXICO CITY, July 26 (Reuters) - Mexico's government on
Friday unveiled the winners of contracts to build and develop an
ambitious new oil refinery, which include Samsung Engineering
 028050.KS  and KBR  KBR.N .
    The $8 billion refinery planned in the southern port of Dos
Bocas is one of the flagship infrastructure projects of
President Andres Manuel Lopez Obrador, who wants to make Mexico
more self-sufficient and wean it off gasoline imports.
    Lopez Obrador this year threw out bids for it by engineering
groups as too expensive, handing oversight of the project to
cash-strapped state oil firm Pemex.  urn:newsml:reuters.com:*:nL2N22L0JE
    Many financial analysts have questioned the wisdom of the
refinery, arguing it makes more sense to import fuel.
    However, the government is adamant it must go ahead.
    A block of work that includes the coking plant for what
would be Mexico's biggest refinery was won by Fluor Enterprises
and ICA Fluor, a tie-up between Mexico's ICA  ICA.MX  and Fluor
Corp.  FLR.N , the energy ministry said in a statement.
    Samsung Engineering and Asociados Constructores DBNR jointly
won two blocks for work including the hydrodesulfurization
plant. Meanwhile KBR and Mexican construction firm Grupo Hosto
won two others for work such as the gas generator plant, among
others.
    A contractual bundle for the site's product storage
facilities will be tendered next year, the ministry said.
    The refinery in the president's home state of Tabasco is
scheduled to process 340,000 barrels per day of Mexico's
flagship grade, Maya heavy crude, and to be completed by 2022.  

 (Reporting by Adriana Barrera and Diego Ore
Editing by Robert Birsel)
 ((dave.graham@thomsonreuters.com; +52 1 55 5282 7146; Reuters
Messaging: dave.graham.thomsonreuters.com@reuters.net))