Essar Projects inks deal with Saudi firm for construction services

Written by PTI | Dubai | Updated: Jun 3 2014, 20:18pm hrs
EssarEssar Projects inked deal with Mohammed Al-Mojil Group for construction services in Jazan. Image Courtesy: Reuters
Ruias-run EPC firm Essar Projects has entered into a deal with Mohammed Al-Mojil Group (MMG), one of the largest Saudi construction service providers, to provide construction services for project developments in Jazan.

This will include Saudi Aramco's 400,000 barrels per day Jazan refinery, which is expected to be the mainstay of a new economic city fulfilling the objectives of the economic development in Jazan, Saudi Arabia.

The refinery is expected to process per day up to 75,000 barrel gasoline, 250,000 barrel low-sulfur diesel and 80,000 barrel vacuum distillation material to be used as fuel for power plants.

Essar Projects is a global EPC (engineering, procurement, construction) contractor headquartered in Dubai. The company

has a large engineering and procurement division as well as operating extensive fabrication facilities and a large construction equipment bank operated from a low-cost Indian base.

The deal aligns with MMG's restructuring plan, and its new business model, focusing on core business units of skilled workforce, scaffolding, steel fabrication, camping/catering plus other services required by the construction industry, and Essar Projects' goal to be immediately operative in Saudi Arabia.

The proposed collaboration combines MMG's proven capabilities, extensive track record in the Saudi construction market, its availability of a large number of skilled resources and logistic support in Kingdom.

With Essar Projects' experience in executing mega schemes across the world and having highly experienced project management teams, MMG is looking to mobilise and invest in large quantities of construction equipment and construction facilities in Jazan area for the long term.

This collaboration will be positioned to cater to all construction aspects of the development of Jazan, thereby creating significant employment opportunities for locals.

"We are excited to be working together with Essar to develop this new business which will expand MMG's footprint in the Kingdom. We chose Essar as our partner based on the depth of their experience and capability in the oil and gas construction market across Asia.

"This new venture is a part of MMG's new strategy to build and grow market leading construction services solutions across the Kingdom of Saudi Arabia," MMG CEO Stewart Macphail said.

Alwyn Bowden, President & CEO, Essar Projects, said that Saudi Arabia is a key market for Essar Projects and this partnership will enable them to provide a value offering to key customers in the country and to actively participate in the development of the Jazan region.

"This collaboration enables us to work flexibly to cater to peak project manpower and resource requirements, thereby servicing our key customers to the fullest," Bowden said.

The Jazan Refinery and Terminal Project is intended to grow the economy of the southern part of KSA by offering more than 1,000 direct jobs and 4,000 indirect jobs.

Only three other refinery projects of the same scale of Jazan Refinery have been commissioned worldwide over the past 20 years.

Essar Projects offers its expertise to the following industries: oil and gas (upstream, mid-stream and downstream), including cross- country pipelines, offshore and onshore terminals, infrastructure (ports and marine, civil and building), power (including hydroelectric) and minerals and metals and has presence in over 20 countries across five continents.

The company has over four decades of experience in delivering mega projects and has recently added a concessions business to its product offerings. Essar Projects is headquartered in Dubai and operates across regions through wholly owned subsidiaries.