Samsung receives 88-mil.-dollar order for offshore facilities

Samsung receives 88-mil.-dollar order for offshore facilities. October. 17, 2016 07:43. by 정민지기자 jmj@donga.com.

Samsung Heavy Industries has secured 1-trillion-won (88.22 million U.S. dollars) deal for major offshore platform project.

The Norwegian oil and gas newspaper Upstream reported on Saturday (KST) that the company has pulled into the lead in the race to build BP’s Mad Dog 2 semi-submersible (FPU) production platform in the Gulf of Mexico. Samsung had been battling against South Korean competitors such as Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. It had also faced additional competition from Singapore and China. But the British supermajor is said to have zeroed in on Samsung as the bidder of choice. The deal is estimated to worth 1 trillion won (88.22 million dollars) and is expected to be concluded early next year.

Samsung Heavy Industries bagged 240-billion-won (220-million-dollar) order for four oil tanks from Norwegian firm Viken on Wednesday. Samsung also clinched a 420-billion-won (37.05-million-dollar) deal to build two LNG carriers from European shipping company GasLog in late September.

The Korean shipbuilder had failed to receive new orders for 11 months straight since October last year, but it successfully won three contracts in recent three weeks, demonstrating that the company still remains strong. Adding to this, prospects are bright to win further contracts as it is under negotiations on major projects as the only bidder.

Samsung Heavy Industries is close to winning an order for four to six LNG carriers from India’s state-owned Gas Authority of India Limited (GAIL) as the sole bidder. Also, the company expects an order from Italian energy company Eni for the construction of a floating LNG (FLNG) unit as the negotiation of a project to build gas reserves offshore Mozambique is nearing end. The project is reportedly worth approximately 3 trillion won (2.5 billion-2.7 billion dollars).