August 06, 2013 [Singapore Bussines] Mainboard-listed Rotary Engineering Limited (Rotary), a provider of integrated engineering, procurement, construction (EPC) and maintenance services in the oil and gas and petrochemical industries, announced that it has been awarded S$200 million worth of EPC contracts in Singapore and Saudi Arabia.
The new contracts bring the company’s year-to-date contract win total above S$600 million.
The Singapore contract win is an EPC contract by a joint venture between three multinational oil companies to build a shared lubricant storage facility in Tuas South, Singapore.
The EPC contract will cover the construction of about 80 tanks, common pipelines, import/export jetty topsides and the infrastructure supporting the operations of the project. The shared lubricant storage facility is the first of its kind in the lubricants industry and will serve its three oil majors’ Lube Oil Blending Plants (LOBPs) and Grease Manufacturing Plants (GMPs), which are located adjacent to the storage facility.
Commenting on the contract, Rotary’s Chairman and Managing Director, Mr Chia Kim Piow, said: “The shared lubricant storage facility is an innovative business model, which attracted three oil giants to come together, to leverage on Singapore’s strategic position as an Asia-Pacific lubricants hub.
Rotary is proud to be awarded the EPC contract. It is an example of our strength and expertise in delivering solution-based engineering design”.
“The shared lubricant storage facility with its shared pipelines, jetty and utilities allow its partners to enjoy economies of scale in their operations. One special feature of the storage facility is that its layout is designed to optimise the land area usage of this project,” added Mr Chia.
In Saudi Arabia, three contracts were awarded by international EPC players for projects in Jubail Industrial City (Jubail). The first contract is for the EPC of 14 tanks for an elastomers plant that produces high specification synthetic rubber of various types.
The second is a contract is for the erection of 28 tanks at the Sadara South Tank Farm, which is also part of the Jubail petrochemical complex. A third contract is for fabrication works at a multi-feed petrochemical cracker in one of the world’s largest petrochemical complexes being built at Jubail.
“These contracts in Saudi Arabia are an indication that the Middle East continues to offer many business opportunities for oil and gas infrastructure engineering,” added Mr Chia.
