Samsung Engineering has announced that it has won a $1.23 billion contract from Aramco, the Saudi oil giant, for the Jafurah Gas Process Package 1, a major project that marks the first shale gas development in the Kingdom.

The project is part of the Jafurah shale gas field development located 400km east of the capital Riyadh. It is expected to be completed by 2025, a statement added.

It added that Samsung Engineering will build a gas treatment facility that will remove sulphur and other substances from 1.1 billion cubic feet of gas per day. The goal of the project is to produce shale gas, natural gas liquids (NGL), ethane, sulphur and stabilised condensate.

Samsung Engineering said that it plans to independently build and complete the project. The scope of work includes a slug catcher, acid gas, NGL and mercury removal units, it added.

Sungan Choi, President and CEO of Samsung Engineering said at the signing ceremony:

“It is my great pleasure that we have an opportunity to participate and contribute to the Aramco’s first shale gas development in Saudi Arabia with the ‘Jafurah Gas Process Package #1 Project. We are confident to provide best services by applying digital innovation technologies, automation processes and smart materials to the project, while leveraging our comprehensive experiences of working in the Kingdom of Saudi Arabia.”

Samsung Engineering has extensive experience by performing in constructing treatment facilities in the past. It plans to fully apply its know-how and technology in carrying out this project, Choi said, adding that the South Korean contractor has a long and successful track record in Saudi Arabia and with Aramco projects, delivering them for Aramco since 2007.