MMG wins US $216m Aramco deal for Yanbu Refinery
Contractor to supply equipment and systems to link industrial complex
Mohammad Al Mojil Group has revealed its second deal for the month with Saudi Aramco, the state oil producer.
The listed Saudi engineering firm will provide equipment and the installation of systems that will link the Yanbu Refinery Complex, a three-year contract worth $216 million. The mandate includes all mechanical and electrical works and will provide manpower, supervision and materials for the operation.
The deal follows the $59 million contract awarded by Saudi Aramco to Mohammad Al Mojil at the start of March to design, build and install a gas plant in Wasit.
Despite the company’s specialism in oil and gas related projects, and a string of contract wins over the last two quarters, MMG has been attempting to diversify its service offering around the Gulf. Last year it set up a company with investment firm National Holding in Abu Dhabi, a venture in which it will take a 49% stake in order to better capture the infrastructure projects arising in the UAE capital.
In December the company won its first contract in the country, a $52.5 million deal to build an engine oil factory.
Earlier this month it announced it bought a 20 stake in Saudi Massadr, a water project company, to bolster its offering to the utilities sector.
MMG shares rose more than 5% yesterday to SAR 17.3 to close the week of trading in Saudi Arabia.
Meanwhile, Saudi Aramco and China Petrochemical Corporation (Sinopec) – China’s largest refinery product manufacturer - yesterday signed a Memorandum of Understanding to development of the Red Sea Refining Company (RSRC), a full-conversion refinery in Yanbu’, on the west coast of the Kingdom.
Saudi Aramco will take a 62.5% stake in RSRC should they proceed to formally participate in a joint venture.