Five South Korean firms win combined $7.2 bln in Kuwait refinery orders.

Five South Korean companies have won a combined $7.2 billion in orders from Kuwait National Petroleum Company to expand capacity and improve environmental standards at two oil refineries.

The contracts, which stem from $12 billion in bids approved in February for the state-run company’s Clean Fuels Project, highlight efforts by South Korean builders to shore up margins via joint bids with other local or foreign firms for major overseas construction projects.

[tbpspa]

Korean companies are increasingly forming consortiums with established overseas companies and that is helping them to win better value contracts, said Yun Sok-mo, an analyst at Samsung Securities.

Overseas plant orders won by South Korean builders during the first quarter rose by 42.1 percent from a year ago, according to the Ministry of Trade, Industry and Energy in a report earlier this month.

The ministry said prospects for further growth in overseas orders looked good given expectations for continued global economic recovery and growing demand for energy-related work.

Daewoo Engineering & Construction Co Ltd said in statement on Monday that it won an order for the Mina Abdullah refinery in Kuwait as part of a joint venture with Hyundai Heavy Industries Co Ltd and Fluor Corp .The order is worth $1.13 billion each for the three companies, according to Daewoo.

Samsung Engineering Co Ltd , in a regulatory filing on Monday, said it got a separate $1.62 billion order for the Mina Abdullah refinery as part of a joint venture with Petrofac Ltd and Chicago Bridge & Iron Company NV.

[tbpspa]

GS Engineering & Construction Corp and unlisted SK Engineering & Construction Co Ltd also said they got an order for refinery work in Kuwait as part of a joint venture with Japan’s JGC Corp .

The third order, for the Mina Al-Ahmadi refinery, is worth around $1.66 billion for each of the three companies, according to GS Engineering and SK Engineering.

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