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Samsung Heavy wins $1.27b deal

Jan. 5, 2017 - 17:51 By Park Ga-young
Samsung Heavy Industries, one of South Korea’s three biggest shipbuilders, won a 1.5 trillion won ($1.27 billion) order to build an offshore facility, the company said Thursday.

It is the first mega offshore facility deal in the new year for the country’s shipbuilders, which suffered a sharp decline in orders last year.

Samsung Heavy Industries Co.'s shipyard on Geoje Island, South Gyeongsang Province. (Yonhap)
The combined annual new orders clinched by the country’s big three shipbuilders -- Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries -- stood at $9.1 billion in the first 11 months of last year, down from $24.3 billion in 2015, $42 billion in 2014 and $54.3 billion in 2013, according to industry data.

For Samsung Heavy Industries, the deal is its first offshore facility order in 18 months. The company, as well as other shipyards, have been suffering from low demand amid the sluggish global economy and weak oil prices. Last year, there was no offshore facility deals around the globe.

Samsung Heavy Industries will build a semi-floating production unit in the US Gulf of Mexico for British oil giant BP Plc. The facility will be able to produce 110,000 barrels of crude oil once it is completed by August 2020, according to the company.

The company also said that it is about to sign another major deal with ENI, an Italian oil company, to build a floating liquefied natural gas unit in Mozambique.

By Park Ga-young (