Saudi Aramco Lubricating Oil Refining Company’s (Luberef) has awarded Samsung Engineering the engineering, procurement and construction (EPC) contract for its $1bn expansion.

The contract is worth $871m and initial engineering work will start immediately. MEED reported in mid-October that Samsung submitted the lowest bid for the project.

The project is being tendered on a lump-sum turnkey (LSTK) contract basis, which will be a combination of grassroots construction and brownfield rehabilitation.

The scope will involve the construction of a 23,000 barrel-a-day (b/d) lube hydrocracker and catalytic ISO-dewaxing complex, which will include hydrogen manufacturing, sour gas absorption, sulphur recovery and prilling units.

That will make up the main package, but Luberef is also tendering a smaller package for a propane deasphalter (PDA) unit that will increase its propane deasphalting from 6,500 b/d to 12,500 b/d, as well as increase the asphalt capacity to 12,000 b/d.

Other upgrades will include modifying existing pipework and building a new water-cooling system, complete with cooling towers.

Luberef is a 70:30 joint venture of Saudi Aramco and the local Jadwa Investment.