Samsung Engineering officially announced that it received a contract from Pemex for the Pemex Salamanca ultra-low-sulfur diesel (ULSD) project.

The project will be executed in two phases. Phase I will include detailed engineering and procurement of long-lead items, and Phase II will comprise the rest of detail engineering, procurement, construction and commissioning. 

The $80 million contract awarded to Samsung Engineering is for Phase I which will be executed on an OBCE (open book cost estimation) basis.

The project site is located in Salamanca, 250 km northwest of Mexico’s capital, Mexico City.

Samsung Engineering’s design will include the new HDS (hydrodesulfurization) unit with the capacity of 38,000 bpd, and the revamping of an existing HDS unit with the capacity of 53,000 bpd. The initial engineering phase of the project is expected to be completed in September of 2015.

"This contract is a result of our exceptional project execution capabilities and the trust we built with our client Pemex throughout previous projects," said Choong Heum Park, CEO of Samsung Engineering. "With the understanding of the Mexican market and the successful completion of previous projects, Samsung Engineering hopes to continue a successful long-term partnership with Pemex.”

Pemex is expected to release more modernization projects for existing refineries in the near future. Samsung Engineering said it hopes that this award leads to a bright future with Pemex as a partner.