SINOPEC Engineering (2386.HK)Signed HKD10 Billion Contract with PETRONAS

(August 29, 2014, Hong Kong) SINOPEC Engineering (Group) Co., Ltd. (“SEG”) (stock code: 2386) announced that the Company formally entered into an EPCC (engineering, procurement, construction and commissioning) package contract (the “Contract”) of Project RAPID (“Refining And Petrochemical Integrated Development”) with PRPC, a subsidiary of Petroliam Nasional Bhd (“PETRONAS”). The total contract value is approximately US$1.329 billion (approximately HK$10.30 billion).

Located in the region of Pengerang, Johor, Malaysia, Project RAPID is a substantial oil refining and petrochemical integrated engineering project owned by PETRONAS. Project RAPID will contribute towards meeting the growing demands for oil products and chemical material in Southeastern Asia. The work scope of SEG under the Contract includes a 15 million tons per annum (“Mtpa”) Crude Distillation Unit, an 8.8 Mtpa Atmospheric Residue Desulphurization Unit, a Hydrogen Collection and Distribution Unit and a Fuel Oil System. The expected contract term is 52 months.

Mr. Yan Shaochun, Executive Director and Chief Executive Officer of SEG, commented “Project RAPID is the open door to collaboration between SEG and PETRONAS. After rounds of bidding against well-known international engineering companies, awarding the contract fully demonstrates SEG's comprehensive competitiveness. This is the first large-scale EPC project in Malaysia won by SEG and is crucial for SEG in expanding Southeast Asia and other overseas markets. With strong technological capabilities, SEG had rich experience in undertaking the EPC for state-of-the-art 10 MTPA class of refinery and 1 MTPA class of ethylene complex. We will continue to leverage on our technological competitiveness and industry experience for providing excellent services to our clients.”

SEG is the leading oil refining, petrochemical and new coal chemical engineering company in the PRC. The Company’s engineering service covers a number of industries including oil refining, petrochemicals, new coal chemicals, inorganic chemicals, pharmaceutical chemicals and clean energy. The Company provides an integrated service chain from technological R&D, licensing, consulting, financing-assistant, procurement, construction, commissioning and start-up services. Leveraging 60 years of industry experience and continual innovation in specialized technologies, the Company has developed the strongest execution capabilities in the PRC with respect to engineering and constructing large-scale oil refining, petrochemical and new coal chemical complexes and is highly competitive in the international engineering market.

Information source:Sinopec
2014-09-01