Chiyoda loses in race for Exxon's Singapore petchem plant's EPC project

29-Jun-07

Japan's Chiyoda Corp has lost its bid for engineering, procurement and construction (EPC) work on Exxon Mobil's steam cracker in Singapore. This leaves Shaw's Stone & Webster as the sole candidate to build a billion-dollar petrochemical unit for Exxon Mobil Corp. Exxon Mobil Corp had invited bids a year ago from the US-based Shaw Group Inc. unit and a joint venture between France's Technip and Chiyoda for engineering, procurement and construction (EPC) work on the steam cracker. Sources reveal that local contractors have recently received a written notice from Chiyoda that they will not be performing the EPC works. An expected announcement from ExxonMobil will soon confirm Shaw as the formal winners of the bid, and will also signal Exxon Mobil's intent to proceed with the project, estimated to cost over US$2 bln (RM6.9 bln). Interestingly, Exxon Mobil has declined to comment on the contract award, saying only that work on the feasibility study was progressing well and it expected to make a final investment decision in the near future.