EPC stands for Engineering, Procurement and Construction which is a prominent form of contracting agreement in the construction industry. The engineering and construction contractor will carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then construct to deliver a functioning facility or asset to their clients. Companies that deliver EPC Projects are commonly referred to as EPC Contractors.
The EPC phase of the project is also known as the Execution phase which normally follows what is known as a FEED or Front End Engineering Design phase. The FEED is a basic engineering design used as the basis for the EPC phase. The FEED can be divided into separate packages covering different portions of the project. The FEED packages are used as the basis for bidding on when the client offers the EPC work to the market. So, here is a list of the top 10 EPC companies in the world 2018.
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The last 12 months have proved fruitful for US contractor Fluor, with some significant steps made in the Middle East. Fluor Corporation was awarded an engineering, procurement and construction (EPC) contract by Sadara Chemical Company for its reverse osmosis (RO) manufacturing facility in Saudi Arabia.
UAE company features prominently in this year’s EPC list after raising major contract wins. Abu Dhabi-based National Petroleum Construction Company (NPCC) boasts a rich history of contract awards from around the GCC. Building on its extensive portfolio, it was recently awarded work on two main projects in Abu Dhabi with their combined value exceeding $1.3bn.
8. SK Engineering & Construction
One of a number of South Korean firms in the EPC 30, SK Engineering & Construction makes the top 10 for the second year in succession. Last year, four major South Korean construction companies won a $6.04bn deal to build an oil refinery in Iraq, according to AFP. The group, made up of GS Construction, Hyundai Construction, Hyundai Engineering, and SK Construction won the bid from Iraq’s State Company for Oil Projects (SCOP).
In unambiguous contrast to its competitors, a lot of which incurred major losses as a result of the oil price slump, CB&I posted some rather robust Q1 results. The company’s profits for the first three months of the year were up 40% at $132.2mn. New awards for the first quarter totaled $3 billion, adding to a backlog of close to $30 billion. Certainly some desirable numbers, but the company is set for a busy year ahead. CB&I will conduct a major overhaul of five crude oil storage tanks on Das Island– a $90mn contract award by ADMA-OPCO.
Australian EPC giant WorleyParsons enjoyed another successful twelve months, topped off by a substantial new contract win.
The firm has been awarded a new six-year contract to provide project management services for Saudi Aramco’s offshore program. The Australian oil and gas service provider has been consulting Aramco on its offshore program for the last twelve years. This is one of the top 10 EPC companies in the world 2018.
French engineering company Technip has won another major contract to add to its already extensive portfolio of projects in the Middle East. The company was recently awarded a project management consultancy deal alongside Japan’s Unico to upgrade a refinery in the city of Basra in southern Iraq.
The contract, which was awarded by the Ministry of Oil’s South Refineries Company, is an EPC deal that will see it increase the petroleum production capacity at the plant following the introduction of a new fluid catalytic cracking unit. The award follows on from an earlier deal won in June 2013 for it to project manage the upgrade of a refinery in Karbala.
4. Samsung Engineering
Samsung Engineering is a mainstay of the EPC landscape in the Middle East and one of the industry’s best known and well trusted names. Part of its strength is its joint venture with the contracting giant Arabtec, and it looked like the company would consolidate yet more towards the end of last year when it announced a mega-merger with Samsung Heavy Industries.
However, this move was scuppered when – according to reports – the amount of stock buying requested from shareholders opposing the deal exceeded the ceiling agreed in the deal.
The company also said the decision to cancel the merger was made to protect shareholder value.
3. Hyundai Heavy Industries
As the world’s largest shipbuilder, the significance of Hyundai Heavy in the region’s oil and gas industry certainly cannot be overstated.
One of its most recent orders include a $1.94bn awards from Abu Dhabi Marine Operating Company (ADMA OPCO) for the construction of fixed platforms in the Abu Dhabi Nasr field.
Saipem enjoyed another stellar year in 2014/15, securing a number of high-profile contracts in the Middle East and beyond.
Saipem will work on an EPC contract relating to the expansion of the onshore production centres at the Khurais, Mazajili and Abu Jifan fields.
The top spot of this year’s Top EPC Contractors is reserved for the international oilfield giant Petrofac.
Petrofac had a very successful start to the year winning deals for some of the Middle East’s most ambitious large scale projects. In January, the London-listed EPC giant secured a $4bn deal for the first phase of the Lower Fars heavy oil development programme in Kuwait.
So, this was the list of EPC companies crucial in the determination of many other companies’ ongoings.