Korea’s POSCO E&C negotiates $2.92bn Vision 2030 projects

Han Chan-Kun, president and CEO of POSCO E&C, and Cho Young Doo, vice CEO for strategic planning, address a press conference on Monday.
Updated 22 June 2016
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Korea’s POSCO E&C negotiates $2.92bn Vision 2030 projects

RIYADH: POSCO E&C, a South Korean global construction leader, says it is negotiating projects related to Saudi Vision 2030 worth $2.92 billion.
Han Chan-Kun, president and CEO of POSCO E&C, announcing this here on Monday, highlighted Korean and his company's contributions in the implementation of Vision 2030.
Chan-Kun said his company has lined up many projects for the Kingdom to support its march to achieve Vision 2030, including 13 projects under planning, two under construction and two under negotiation.
"Under construction projects are the $421 million sulfur railcar roaring faculty owned by Saudi Aramco and the $79 million Yanbu wastewater treatment plant owned by Marafiq,” he said.
"The two projects under negotiations are the $2.00 billion Ghazlan power plant owned by Saudi Electricity Company (SEC) and construction of $918 million five-star hotel owned by Dar Al Hijrah," he added.
Chan-Kun, a prominent South Korean business leader, highly lauded Vision 2030 stating that it will transform the country to a new advanced level both regionally and globally, and will provide the Kingdom and its people more prosperity and better quality of life in the post-oil era.
"Korea will be a strong contributor to this transformation process with all that it has in terms of knowledge and expertise. Our company already has started this by working in some of the vision projects and it will work on more once we get more opportunities," he said.
He pointed out that his company entered into partnership with the Saudi Public Investment Fund (PIF), which purchased 38 percent (around $ 1.1 billion) of his company and this partnership resulted in establishing PECSA, a new Saudi-Korean joint venture company that will be a major player in the fields of urban development, housing and infrastructure construction in the country.
He hoped that the new JV will place his company in a better position to offer the best possible projects in its specialties across the Kingdom.
"While partnerships with many others can be merely for draining profits from the country after completion of projects and nothing else, our partnership with PIF, hopefully will be mutually beneficial and will secure profitability and stability, and sustainability for the projects we implement, " Chan-Kun added.
"Also, the joint venture will benefit in technology transfers, job creation, improve Saudi and GCC engineers’ capabilities by interacting with their high level counterparts in POSCO E&C," he pointed out.
Chan-Kun said his company will provide many job opportunities for Saudis especially in the field of engineering and construction. He expressed his admiration for the Saudi students currently studying in South Korea and said with hard work and devotion they are assured of taking their right places in many fields during the implementation of Vision 2030 when they return home.
He pointed out that his company, ranked third in Korea and 39th globally in the field of engineering and construction. It is part of the Korean and global giant, POSCO Group, that has six major business affiliates in the fields of steel, engineering, trade, IT, energy, and chemistry, and comprises 41 subsidiaries in these fields.
Cho Young Doo, vice CEO for strategic planning, also addressed the media shedding light on POSCO E&C's strategic approach in delivering Vision 2030.
He said his company's strategic approach will focus on three elements. First, the strategic relationship between Korea and the Kingdom that goes back to 1960's as well as the strategic partnership and expertise of the three concerned parties — Saudi PIF, POSCO Group, and POSCO E&C.
The second is provision of total solution from the accumulative know-how and urban development expertise his company has acquired from many past mega projects' execution.
The third is job creation and improving the capabilities of Saudi engineers and work force in construction specialties.


Libya’s NOC declares force majeure on El Sharara oilfield

Updated 18 December 2018
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Libya’s NOC declares force majeure on El Sharara oilfield

  • El Sharara — a 315,000 barrels a day field was taken over on Dec. 8 by groups of tribesmen, armed protesters and state guards demanding salary payments
  • Some government officials favor offering quick cash to the occupiers to make them leave, but NOC officials have warned that would set a precedent

TRIPOLI: Libya’s state oil firm NOC has declared force majeure on operations at the country’s largest oilfield, El Sharara, a week after it announced a contractual waiver on exports from the field following its seizure by protesters.

The 315,000 barrels a day field, located in the south of the North African OPEC member country, was taken over on Dec. 8 by groups of tribesmen, armed protesters and state guards demanding salary payments and development funds.

Officials have been unable to persuade the groups, who have been camping on the field, to leave the vast, partly unsecured site amid disagreements how best to proceed, workers on the field said.

Some government officials favor offering quick cash to the occupiers to make them leave, but NOC officials have warned that would set a precedent and encourage more blockades, workers at the oilfield say.

NOC has described the occupiers as militia trying to get on the payroll of field guards, a recurring theme in Libya where many see seizing NOC facilities as an easy way to get heard by the weak state authorities.

Production will only restart after “alternative security arrangements are put in place,” NOC said in a statement.

Operations at the smaller El Feel oilfield continued as normal, engineers said.

“Production at Sharara was forcibly shut down by an armed group — Battalion 30 and its civilian support company — that claimed to be providing security at the field, but which threatened violence against NOC employees,” NOC Chairman Mustafa Sanallah said in the statement.

His comments came after the chief of staff of the Tripoli-based government, Abdulrahman Attweel, criticized some of Sanalla’s previous comments about the protesters as “irresponsible.”

“These people (guards) were there to protect the field without salaries and without any attention to them and their daily needs, not in terms of accommodation, supply, transportation and communication,” Attweel told Al-Ahrar channel late on Monday.

Their demands were legitimate, he said, echoing comments by some southern lawmakers and mayors demanding more jobs and development for the neglected region.
The blockade has been complicated by the presence of tribesmen, who have argued against quick cash payments saying they want funds to improve hospitals and other services, which might take time to deliver.

The shutdown of the El Sharara has not affected the El Feel oilfield, also located in the south. It continued to pump around 70,000 barrels a day, field engineers said.
Its exports were being routed via the Melittah oil and gas port, which like El Feel belongs to a joint venture NOC has with Italian energy company Eni, another engineer said.

A spokesman for NOC did not respond to a request for comment.
El Sharara crude is normally transported to the Zawiya port, also home to a refinery. NOC runs the field with Spain’s Repsol , France’s Total, Austria’s OMV and Norway’s Equinor, formerly known as Statoil.