[2023 Asia Construction Awards] Daewoo Eonseol Joins Nigeria LNG Project, Enters '10 Trillion Won Annual Sales Club'

Overseas Construction Association President's Award

Daewoo Engineering & Construction, which received the Overseas Construction Association President's Award, secured sustainable growth momentum by pioneering overseas markets such as the Nigeria LNG Train 7 project and the Kaduna refinery facility amid uncertain external conditions, entering the 10 trillion KRW annual sales club.

The Nigeria LNG Train 7 project involves constructing an LNG liquefaction plant with an annual capacity of 8.3 million tons and auxiliary facilities on Bonny Island in Rivers State, with a total contract amount of 5.361 trillion KRW. Daewoo E&C's stake is about 40%, approximately 2.1444 trillion KRW. The construction period is 64 months, from May 2020 to September 2025. It is regarded as a historic achievement in domestic construction history as Daewoo E&C secured the position of the main contractor in the LNG liquefaction plant EPC (Engineering, Procurement, and Construction) market, which had been monopolized by some global construction companies.

During the bidding process, Daewoo E&C fiercely competed with other companies in FEED (Front-End Engineering Design) evaluation, technical bid evaluation, and price bid evaluation. The fact that it had a proven track record of constructing five out of six existing units from Unit 1 to Unit 6 was highly evaluated, leading to the successful bid. Daewoo E&C is recognized as the best construction company in Nigeria based on its abundant business experience. Since first entering Nigeria in 1978, Daewoo E&C has successfully completed over 70 projects to date.

Overview of Nigeria LNG Train 7 Project

In February, Daewoo E&C also secured an emergency repair contract worth 589.18 million USD (approximately 725.5 billion KRW) for the Kaduna refinery facility in Nigeria through a private contract. This project involves urgent repairs to the existing Kaduna refinery located 160 km north of the capital, Abuja. The company will independently carry out the commissioning phase for petroleum product production. This is an additional order following the emergency repair work for the Warri refinery secured last year.

As Daewoo E&C's overseas business rapidly accelerates, it entered the 10 trillion KRW annual sales club last year. Last year's sales recorded 10.4192 trillion KRW, a 20% increase from the previous year. This year, with two orders secured in Libya and Nigeria, the company has already achieved 95% of its overseas order target of 1.8 trillion KRW. In Libya, it secured a fast-track power plant construction project worth 790 million USD (approximately 1 trillion KRW).

A Daewoo E&C official explained, "The civil engineering and plant sectors saw an increase in the sales proportion of highly profitable projects such as Nigeria LNG Train 7 and Iraq Al-Faw New Port, leading to improved profitability," adding, "Efforts to stabilize the cost ratio in the civil engineering and plant sectors have shown visible results."