Hyundai Engineering Wins Additional $170 Million Contract for Balakpapan Project in Indonesia

[Asia Economy Reporter Yuri Kim] Hyundai Engineering has secured additional construction work for the 'Indonesia Balikpapan Refinery Project.' The additional work is valued at a total of 170 million USD (approximately 201.79 billion KRW). With this, Hyundai Engineering has achieved a total of three contract wins in the Balikpapan area of Indonesia.

On the 13th, Hyundai Engineering announced that it had won the 'Hydrocracking Unit (HCU) Expansion Project' at the Balikpapan refinery currently under construction in Indonesia. The total project scale is 170 million USD, of which Hyundai Engineering's share is about 58.8%, amounting to 100 million USD (approximately 118.7 billion KRW).

This contract win follows the previous September's 4 billion USD (approximately 4.748 trillion KRW) 'Balikpapan Refinery Project' contract and the early this year's contract for 'Sour Water Treatment and Hydrogen Production Facility Installation.' It is the second additional contract linked to the Balikpapan refinery. The client, Pertamina, has increased trust in Hyundai Engineering's technical capabilities and project execution capacity demonstrated during the original 'Balikpapan Refinery Project,' leading them to entrust Hyundai Engineering with this second additional construction following the first. The company explained this.

The Hydrocracking Unit is a facility that produces naphtha, kerosene, and other products by inducing hydrogenation reactions using catalysts on diesel. Through this expansion, Hyundai Engineering will increase the processing capacity of the Hydrocracking Unit from the existing 55,000 barrels per day to 60,000 barrels per day, thereby enhancing the production capacity of the Balikpapan refinery.

Indonesia's state-owned oil company, Pertamina, has established a refinery development master plan known as RDMP (Refinery Development Master Plan) to significantly expand crude oil refining capacity by 2026 and is promoting projects for new refinery facilities and modernization.

Meanwhile, Hyundai Engineering succeeded in winning the FEED (Front End Engineering Design) contract for the 'Sarawak Shell Gas Processing Facility' ordered by the global oil company Shell in Malaysia at the end of April, and last month secured a FEED contract for a petrochemical plant in Europe, showing strong performance.

A Hyundai Engineering official said about this contract win, "Despite difficulties in the Balikpapan refinery construction due to the COVID-19 pandemic this year, this is the result of demonstrating excellent project execution capabilities through thorough risk management," adding, "Although there are many restrictions on overseas sales activities recently, we will continue to strengthen our engineering competitiveness and enhance our contract-winning capabilities."

This content was produced with the assistance of AI translation services.