[Courtesy of Samsung Heavy]
South Korea's embattled shipbuilding community heaved a sigh of relief Thursday on the news that Samsung Heavy Industries Co. has won a 1.27 billion US dollar order to build an offshore facility, marking the first mega deal this year.
The deal with BP Plc came as South Korean shipbuilders have been struggling with a protracted slump especially in the field of offshore facilities, with oil companies reducing spending and rig owners canceling orders or asking for delayed ship delivery.
Samsung Heavy said it would build a floating production unit by August 2020. The semi-submersible platform capable of producing 110,000 barrels of crude oil will be used for BP's field development project called "Mad Dog II" in the US Gulf of Mexico.
The deal was the first of its kind in 18 months. Samsung Heavy predicted it may win a fresh offshore facility soon deal due to rising oil prices. South Korea's three major shipyards have been under creditor-led restructuring to cope with dwindling orders.
reporter
Park Sae-jin
swatchsjp@ajunews.com
