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Biz News Korea(Eng)
Samsung Engineering settles dispute with Oman over contract failure
- Collected
- 2018.01.29
- Distributed
- 2018.01.30
- Source
- Go Direct
According to industry sources on Sunday, the International Center for Settlement of Investment Disputes (ICSID) of the World Bank recently announced that Samsung Engineering and the Omani government had reached out-of-court settlement for the delayed payment.
In 2013, the Korean builder was named the preferred bidder for the $1 billion worth plant construction project by ORPIC, but they failed to sign a final deal due to their disagreements in detailed terms such as construction period. ORPIC redeemed the bond they had set as a deposit of the contract, and Samsung Engineering filed an Investor State Dispute Settlement (ISDS) against the company in 2015. ISDS is a provision in trade agreements, granting companies special rights to resolve claims of investors.
Despite the dispute, Samsung Engineering last year succeeded in making a foray into Oman after it won a $2 billion contract from Duqum Refinery and Petrochemical Industries (DRPIC), a joint venture of Oman and Kuwait, to build a refinery capable of refining 230,000 barrels of oil a day in the Duqum Special Economic Zone, the southern part of Oman. The company expects the deal would help it to secure other petrochemical projects in the region.
Shares of Samsung Engineering closed Monday at 17,500 won, up 0.86 percent from the previous session.
By Yong Hwan-jin and Choi Mira
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