SINGAPORE - Hydrochem Saudi, a wholly owned subsidiary of Hyflux Group, has been awarded a contract by a subsidiary of Italian group Saipem to design, manufacture and supply a seawater reverse osmosis and sulphate removal facilities package in Khurais, Saudi Arabia.

The project value is approximately US$50.4 million (S$72.5 million), mainboard-listed Hyflux announced on Tuesday (Jan 19).

"This win underscores Hyflux's growing presence in the Middle East region and our expertise in designing high specification plants for industrial customers," said Ms Olivia Lum, executive chairman and Group CEO of Hyflux.

The Khurais oil field is located approximately 150km north-east of Riyadh. Saipem is the engineering and construction contractor for the project to expand the daily production capacity at the Khurais Central Processing Facility by 300,000 barrels of oil from 1,200,000 barrels currently.

Hyflux said the contract is to be fulfilled over one year and is expected to contribute to earnings for the financial year ending Dec 31, 2016.