KSOE clinches $577 mn offshore plant order from US oil developer

[Source: Korea Shipbuilding & Offshore Engineering Co.]

Korea Shipbuilding & Offshore Engineering Co. (KSOE), the world¡¯s biggest shipbuilder based in South Korea, has netted an offshore plant order worth 659.2 billion won ($576.5 million) from an oil developer in the United States, its third floating production storage (FPS) order for this year.

KSOE announced Friday that its subsidiary Hyundai Heavy Industries Co. is consigned to deliver an FPS facility in a 659.2 billion won deal with a U.S. oil company. The FPS facility will be later installed in the Shenandoah oil field, located 300km south of Louisiana.

The FPS facility, which is 91 meters long, 91 meters wide and 90 meters high, will be capable of producing 100,000 barrels of oil and 4 million cubic meters of natural gas a day, according to the company.

Hyundai Heavy Industries will start constructing the hull in the third quarter of next year after a yearlong planning and designing on an engineering, procurement and construction (EPC) contract. The facilities then will be moved to the Shenandoah oil field in the second half of 2024 for production.

KSOE was able to procure the latest order after successfully delivering the King¡¯s Quay FPS to U.S. oil exploration and production company Murphy in June, it said.

The company has won three offshore plant orders including the latest one so far this year. It signed a $450 million gas platform deal for Posco International¡¯s LNG field project offshore Myanmar in January and a $759 million floating production storage and offloading (FPSO) facility deal with Brazilian oil company Petrobras.

With the latest deal, KSOE has secured total $17.4 billion worth orders for 179 sea vessels and facilities so far this year, already exceeding its yearly target of $14.9 billion.

Shares of Korea Shipbuilding & Offshore Engineering closed Friday flat at 130,000 won.

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