Hyundai Engineering & Construction, Hyundai Engineering Co. and Saudi Arabia's state-run oil giant, Saudi Aramco, signed a US$2.4 billion deal Monday to construct a gas processing plant in the Jafurah gas field, South Korea's presidential office said.
The contract was signed during a ceremony marking 50 years of construction cooperation between South Korea and Saudi Arabia, with President Yoon Suk Yeol in attendance. Yoon is currently on a four-day state visit to the Arab kingdom.
The Jafurah gas field is the largest liquid-rich shale gas play in the Middle East and contains an estimated 200 trillion standard cubic feet of natural gas, according to Aramco.
The latest contract brings to $8.6 billion the total value of construction projects won by South Korean firms in Saudi Arabia this year, the presidential office said.
Monday's ceremony, held at a Neom exhibition center in Riyadh, marked the anniversary of South Korea's first construction deal in Saudi Arabia, which was won by what is now SM Samwhan Corporation to build a highway connecting the cities of AlUla and Khaybar.
In a speech, Yoon said the two countries must open a new future in their infrastructure and economic cooperation in line with technological changes and the demands of the times.
He also said the two countries will be able to present a new model for future cities if they combine South Korea's capabilities to build cutting-edge cities with the Neom smart city project pushed by Saudi Arabia.
Meanwhile, South Korean Internet portal operator Naver signed a $100 million contract with Saudi Arabia's Ministry of Municipal and Rural Affairs and Housing to establish "Digital Twin" virtual reality spaces in five cities, including Riyadh and Mecca, to provide services in urban planning and management, and flood forecasting.
The ceremony also saw the signing of a memorandum of understanding (MOU) between South Korea's Samsung C&T and Saudi Arabia's Public Investment Fund on forming a joint venture on modular construction, which will contribute to the Neom project, as well as the signing of an MOU between South Korean mobile carrier KT Corp., Hyundai Engineering & Construction, and Saudi Telecom on the establishment of data centers and other digital infrastructure.