LG mulls subcontracting options

13 December 2002

South Korea's LG Engineeringexpects to begin construction on the upgrade of Azzawiya refinery in the first quarter of 2003. The company is still undertaking detailed engineering work on the 120,000-barrel-a-day (b/d) refinery. The estimated $300 million project will involve the installation of a new continuous catalytic reformer unit, gas/oil and naphtha hydrotreaters, an isomerisation unit, sulphur and amine units and a desalination and power plant.

LG is reviewing options for subcontracting out all or part of the construction work, which is expected to take 20 months. Companies were invited to respond by 30 November to an inquiry for construction, mechanical, electrical and instrumentation work on the project. However, some prospective candidates requested an extension to the deadline, and their proposals are not expected until mid-December. The decision on whether to subcontract work out will be made by the start of next year, once LG has had an opportunity to review the pricing proposals (MEED 15:11:02).

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