DSI wins Egypt petchem contract
Dubai, December 13, 2011
Drake & Scull International (DSI), a market leader in integrated design, engineering and construction sector, said it has won a Dh142 million ($38.6 million) construction contract for a mining grade ammonium nitrate plant in Egypt.
The contract secured by Drake & Scull Water and Power (DSWP) in the Ain Sukhna province is the company's first project in Egypt’s petrochemical industry since the launch of its specialized regional oil and gas division in 2010.
The company entered into a strategic JV agreement with Hassan Allam Construction, one of Egypt’s largest general contracting companies, to execute the project.
The scope of work includes complete construction and pre-commissioning of following packages: civil works, echanical equipment and storage tanks erection works, piping and structural steel fabrication and erection works, said a DSWP statement.
The petrochemical plant is developed and operated by Egypt Hydrocarbon Corporation and comprises a nitric acid unit and ammonium nitrate unit, together with associated infrastructure and facilities including storage tanks, pipelines and utilities.
Once the plant gets completed in April 2014, it will produce 1,060 MTPD of mining grade ammonium nitrate (MGAN), for use in mining and construction industries, it added.
Commenting on the win, Tawfiq Abu Soud, the managing director of DSWP, said the contract represents a strategic milestone for the company in Egypt.
'Since the establishment of our regional oil and gas EPC specialised division in 2010 we have been aggressively engaged in partnering with regional and multinational companies to expand our market reach and optimize our service offering in this sector,' the official remarked.
'Our partnership with a longstanding market leader such as Hassam Allam Construction will allow us to expand in this promising industry whereby our unified multidimensional portfolio and regional expertise will enable us to cover the complete value chain of petrochemical sector,' said Abu Soud.
On the strategic tieup, managing director Hassan Allam said, 'We have a long track record providing first class construction services to Egypt’s leading industrial players. We are happy to partner with a reputable company in this field and look forward to future ventures and achievements across the country.'
DSWP is currently bidding on various projects in the oil and gas industry in the Mena region and is proactively seeking the essential resources to further expand in this sector .
This contract brings DSI's total projects awards announced year to date in Egypt to Dh618 million.-TradeArabia News Service