EEI firm bags $141-million project in Saudi

MANILA, Philippines - Construction giant EEI Corp.’s joint venture firm in Saudi Arabia has bagged a $140.9-million contract for the construction of the central processing facilities of Saudi Arabian Oil Co. (Saudi Aramco).

EEI, which was among the stock market’s top five gainers yesterday, closed 7.27 percent higher at P2.95 from P2.75 Wednesday. A total of 5.2 million shares changed hands valued at P15.125 million.

In its disclosure to the Philippine Stock Exchange, EEI said its 49-percent owned joint venture firm, Al Rushaid Construction Co. Ltd. (ARCC), was awarded a subcontract package, which involves the construction of the facilities in Manifa, Saudi Arabia. Work on the site is slated to begin in September.

The project forms part of the major crude oil increments project for the Kingdom of Saudi Arabia. This is seen to jack up Saudi Arabia’s oil output by 900,000 barrels per day.

The Al-Rushaid Group of Companies is an international organization which provides a diverse range of engineering and contracting services, facilities and products, including but not limited to oil and gas, petrochemical, chemical processing and power generation industries.

ARCC boasts of its partnership with JGC Corp. and Saudi Aramco, the largest oil corporation in the world with the largest proven crude oil reserves and production.

JGC designs, constructs and maintains plants and industrial facilities globally. Its services include petroleum, petrochemical, gas, nuclear power, biochemical, food, pharmaceutical, and communication facilities.

ARCC is currently the subcontractor of another JGC Arabia Ltd. project for National Chevron Phillips ethylene plant north plot project that is ongoing in Jubail Industrial City in Saudi Arabia.

ARCC is also the engineering, procurement and construction service-provider of Saudi Aramco in a project involving the replacement and upgrading of flare tips of several gas oil separation plants in the eastern region, also in Saudi Arabia.

Other projects of ARCC are the Shuqaia II independent water power plant project and the Qurayyah power plant of Saudi Electric Co. both under Mitsubishi Heavy Industries.

EEI is a member of the Yuchengco Group of Companies, a leading conglomerate with interests in banking, insurance and financial services, education and property development.

EEI was named the best managed small-cap corporate in the Philippines for 2009 by Asiamoney magazine. A company falls under the small cap category if its market capitalization is $800 million or less.