South Korean shipbuilder Samsung Heavy Industries (SHI) announced on 7 July that it has won an order for a semi-submersible floating production system (FPS) from a North America-based customer.
SHI said the KRW337 billion (USD300 million) contract takes its year-to-date sales to KRW12.88 trillion.
The FPS would be delivered by 5 July 2017.
The shipbuilder did not reveal the customer’s identity, but IHS Petrodata said the vessel is likely to be for Shell America’s Appomattox development in Mississippi Canyon Block 391.
IHS Petrodata said, “The project is being designed as a semi-submersible production facility with 15 producing wells and five water injection wells used to exploit the Appomattox field in Mississippi Canyon Block 391 and the Vicksburg field in DeSoto Canyon Blocks 353 and 397. SHI will fabricate the hull for the semi with Kiewit fabricating the topsides.”
Dongbu Securities analyst Kim Hong-gyun suggested that SHI’s recent rebound in clinching orders for offshore vessels and FPSs would ease concerns that it would struggle in a low-oil price environment.
Royal Dutch Shell has signed a contract granting SHI three floating LNG (FLNG) vessels should the Browse FLNG project in Australia gets the final investment decision, three years after the same oil major awarded Prelude FLNG contract to the shipbuilder. Prelude is the world’s first FLNG vessel.
The three FLNG vessels are worth USD4.7 billion for now, as the amount covers only manufacturing expenses for the hulls.
The entire contract value would be confirmed only in the second half of 2016, when front-end engineering and design is completed.
Also, on 30 June, SHI clinched offshore platform orders tied to Statoil’s Sverdrup Topside project. The contract is worth USD1.04 billion.
Kim opined SHI could win more orders as the year progresses. Year to date, SHI has achieved 58% of its USD15 billion target for new orders.