Offshore Plant News

Samsung Heavy Industries has received basic certification for a floating CO2 storage unit (FCSU) from DNV.The FCSU, jointly developed by Samsung Heavy Industries and MISC, is 330 meters long and 64 meters wide, and has a high-pressure tank capacity that can store 100,000 cubic meters of liquefied CO2 at -50 degrees Celsius or less.The injection module mounted on the upper part of the hull secures the ability to send five million tons (MTPA) of CO2 per year to the depths of the seabed.

The Danish provider of mobile robotic welding and adaptive multi-pass welding technologies, Inrotech has partnered withGullco International, a manufacturer of automated welding and cutting carriages, modular automation, and custom automation solutions.The two companies will use their partnership to strengthen their customer offerings and market position. With this partnership, both companies combine their knowledge together and offer smart, easy-to-use automation solutions equipped with intelligent software and scanning technology for the growing need for welding automation technology…

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co (DSME) is targeting deals worth more than $6.88 billion in 2020, said a report by Yonhap.DSME received an additional order of six container vessels worth 891.8 billion won (US$768 million) from an African client on Dec. 27. DSME will deliver the vessels to their owner by the end of October 2022.The world's second-largest shipbuilder by order backlog won orders worth $6.88 billion to build 39 vessels, achieving 82 percent of its annual order target of $8.37 billion in 2019.The 39 ships includes 10 LNG carriers, 10 super-large crude oil carriers, 11 container ships, two LPG carriers…

South Korean shipbuilding and offshore contractor Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) has secured a 891.8 billion-won (US$771 million) order to build six container ships.According to Yonhap, the world’s second-largest shipbuilder by order backlog will deliver the ships to an unidentified client in Africa by October 2022 under the deal.With the latest deal, Daewoo Shipbuilding has won orders worth $6.88 billion for 39 vessels so far this year, achieving 82 percent of its annual order target of $8.37 billion.The 39 vessels include 10 LNG carriers, 10 super crude oil carriers, 11 container ships, 2 super LPG carriers, 5 submarines, and 1 offshore plant.

South Korean shipbuilder Hyundai Heavy Industries (HHI) has obtained DNV GL's approval in principle (AiP) certificates for three models of its “Standard FPSO” design.Vidar Dolonen, Regional Manager of Korea and Japan at DNV GL – Maritime, presented the AiPs to Jun Sung Park, COO of the offshore plant business at HHI.The standard FPSOs are the topside and hull integrated models developed by HHI. The FPSOs include two mid-sized oil FPSOs, with a storage capacity ranging from 1.0MMbbls and 1.5MMbbls, and one gas FPSO which has a topside gas processing capacity of 840MMSCFD.The two oil FPSOs were developed in line with current market conditions and trends…

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) and DNV GL have signed a framework agreement which will see them cooperate on joint development projects (JDPs) for future technologies in the shipbuilding and offshore plant industries.The Norway-headquartered classification society said in a release that the agreement was signed by DSME President & CEO Sung-Geun Lee and DNV GL Group President & CEO Remi Eriksen at the DNV GL headquarters in Høvik.“Through the JDPs with DNV GL, we aim to develop new technologies to meet the needs of our clients and further provide the direction in the shipbuilding and offshore industries,” said Sung-Geun Lee.

Shareholders of Hyundai Heavy Industries (HHI) have approved the South Korean shipbuilder's split-up plan amid fierce opposition from its labor union.According to local media reports, Hyundai Heavy Industries, , South Korea's largest shipbuilder, is now divided into mid-holding companies and subsidiaries engaged in shipbuilding, special ship, offshore plant, engine and machinery business.HHI changed its name and mission to the Korea Shipbuilding & Marine Engineering Co., Ltd. (KSME) and decided to use Hyundai Heavy Industries (HHI) as its new subsidiary.KSME will be a listed company with a 100% shareholding in the newly-split company.HHI…

Italian oil group Eni is joining forces with compatriot shipbuilder Fincantieri, power grid group Terna and state lender Cassa Depositi e Prestiti (CDP) to develop wave power stations.The Chief Executive Officers of the companies have signed a non-binding agreement today at the Eni headquarters in the EUR district of Rome to develop and build wave power stations on an industrial scale.The agreement seeks to combine the knowledge of the collective companies to transform the Inertial Sea Wave Energy Converter (ISWEC) pilot project into a project on an industrial scale for immediate application and use. ISWEC is the innovative system that converts energy generated by waves into electricity.

The Korean government will order 140 liquefied natural gas ships, worth 1 trillion won ($880 million), from the nation’s small and midsized shipbuilders by 2025, said Korea’s press agency Yonhap.South Korea’s Ministry of Trade, Industry and Energy said the government will provide shipbuilders and suppliers   1.7 trillion won ($1.5 billion) in financial aid to prop up the country’s ailing shipbuilding industry.The report quoted Yoon Sung-hyuck, chief of the Ministry of Trade, Industry and Energy’s shipbuilding and offshore plant industry division as saying that, in order to set small and midsized shipbuilders apart from their rivals from China and Japan…

South Korea's leading shipbuilder Hyundai Heavy Industries (HHI) aims to achieve 7.98 trillion won ($7.5 billion) in sales this year as its president warned of an unprecedented crisis due to declining order backlogs, reports Yonhap. Hyundai Heavy has not won any offshore plant orders for the past two years. The company's 2018 sales target represents a 60 percent decline from a decade ago. The shipyard said it is expected to post an estimated 10.03 trillion won in sales for 2017. The sales target is based on a parent base.

The South Korean shipbuilder Hyundai Heavy Industries (HHI) has reported a net profit of KRW 682.3 billion (USD 596.6 million) for the full year of 2016, returning from a loss of KRW 1.36 trillion (USD 1.18 billion) seen in the full year 2015. Operating profit for 2016 totaled 1.64 trillion won, up from a loss of 1.54 trillion won for 2015. HHI also announced consolidated 4Q 2016 results. During the October-December period of 2016 HHI racked up 10.3427 trillion won in sales and 437.7 billion won in operating profits, posting quarterly profits for four straight quarters. HHI attributed the profit to an increased volume of ships it won at profitable prices…

Korean Register (KR) – an IACS member classification society - has signed a Memorandum of Agreement to establish a joint venture company with the Iranian Classification Society (ICS). The agreement is to deliver plant facility certification and engineering services. This is a growing market, with demand for plant project and industry safety inspection services expected to increase significantly over the next five years. The company will be called the ‘Iran-Korea Technology Assurance Company’, with 50-50 capital investment from KR and ICS. It will be fully operational in 2017. KR established a branch office in Tehran in 2010 but sanctions meant that the society suspended most of its services…

Seoul, South Korea – February 4 – Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, announced that it has signed a memorandum of understanding to collaborate on the localization of main equipment and materials for offshore plants with Doosan Heavy Industries & Construction (DHIC) and Center for Creative Economy & Innovation in Ulsan and Gyeongnam. HHI and DHIC agreed to develop six main items of equipment for offshore plants such as floating, production, storage and offloading (FPSO) units and tension leg platforms (TLP), by sharing engineering and construction technology and prowess in on- and offshore plant sectors where the two companies have been actively played.

South Korea’s second-largest shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME) hit a hurdle in its efforts to get capital injection after the Export-Import Bank of Korea (Korea Exim Bank) delayed necessary funding for its shipbuilding project, reports MKBN. In June, DSME won a $1.8 billion order from Danish container-shipping giant Maersk Line to build 11 ultra-large container vessels with a capacity of 19,630 TEU. The Korea Development Bank (KDB) and Korea Exim Bank, two largest creditors of Daewoo Shipbuilding, issued Maersk refund guarantee (RG) for five and six megaships, respectively. But Korea Exim Bank paid Daewoo Shipbuilding only 60 percent of 900 billion won ($75.3 million)…

South Korean shipbuilder Samsung Heavy Industries Co will try again to merge with sister company Samsung Engineering Co Ltd later this year, reports Korea Times. Samsung Engineering CEO Park Jung-heum has said he will once again pursue a merger talk. "Before pushing for the deal, we need understanding from the financial markets, which we believe is a key condition," he told local reporters. Samsung Heavy's planned $2.5 billion takeover of Samsung Engineering collapsed in November due to shareholder opposition. Some investors were dubious about the benefits of combining a shipbuilder with an engineering and construction firm. Samsung Heavy was in deep trouble as low oil prices hit its offshore plant business.

Firm to sell non-core assets, exit from non-essential businesses; Daewoo reported $2.6 bln operating loss in Q2. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd said on Monday it would sell non-core assets, and shut down or exit non-essential units as part of restructuring after a multi-billion dollar loss in the April-June quarter. Daewoo Shipbuilding late last month reported a provisional second-quarter operating loss of 3.03 trillion won ($2.61 billion), citing construction delays on offshore projects such as oil and gas rigs. The high-end offshore plant business has been loss-making for the world's three biggest shipyards…

Can pain in the China's ship building industry the gain for South Korea? Will 2015 save Korea's major shipbuilders which had a pretty tough time in 2014? Korea's major shipbuilders had a pretty tough time in 2014. Out of the country's three major players, only Daewoo Shipbuilding & Marine Engineering hit its order target last year. It received orders for 68 ships and an offshore plant. Korea's other major players, Hyundai Heavy Industries and Samsung Heavy Industries, both failed to hit their targets. Market experts partly attribute last year's weak performance to falling global oil prices, which negatively affected demand for offshore plants and drill ships. Tough competition from China and Japan also posed a threat to the nation's shipbuilders.

Yoon Sang-Jick, Minister of Trade, Industry, and Energy (MOTIE) of Korea, held a meeting to check pending issues faced by Korean shipbuilding and offshore plant industry at Seoul Palace Hotel recently. The meeting was intended to examine current status of overseas and home industry and seek response proposals. Some 20 presidents from allied organizations attended, such as MOTIE, the Ministry of Oceans and Fisheries (MOF), the Ministry of Employment and Labor (MEL), shipbuilding and offshore plant industry…

Hyundai Heavy Industries (HHI),  claimed to be the world’s biggest shipbuilder, and the only one in Korea capable of constructing both Membrane type and Moss type LNG carriers, informs it will exhibit at the upcoming Gastech 2014 show in Gyeonggi Province, South Korea. The shipbuilder says it has taken the lead in introducing cutting-edge LNG-related ships, and developing independent LNG storage system and technology. It will show models of an LNG carrier, an LNG FPSO and an LNG FSRU at the event.

At the sixth Korea-Russia Business Dialogue meeting held last week in Seoul and attended by President Putin and President Park Guen-hye, the Korean Register (KR) and the Russian Register of Shipping (RS) took the opportunity to sign an agreement on shipbuilding. The memorandum of understanding brings the two class societies closer together and sets out a range of cooperative activities related to shipbuilding and offshore plant. The aim is the continued development and promotion of the international shipbuilding industry and the agreement includes technical cooperation and development of common rules for icebreaker/ice classed vessels…

At the recent Korea-Russia Business Dialogue meeting held in Seoul attended by President Putin & President Park Guen-hye, the Korean Register (KR) and the Russian Register of Shipping (RS) signed a shipbuilding memorandum of understanding (MOU) bringing the two class societies closer together with a range of cooperative activities related to shipbuilding and offshore plant. “We are keen to continue to develop Russia’s shipbuilding sector and also to widen our own skill and knowledge base. “I am delighted to sign this agreement which I am confident heralds a long and fruitful relationship between KR and RS.

South Korea plans to develop the offshore plant industry into a new engine for growth that will create over 10,000 new jobs by 2017, reports Yonhap News citing a government source. The government plans to effectively implement its policy initiatives by jointly investing some 900 billion won ($848 million) with the private sector by 2017. The move comes as the global market for offshore plants is expected to grow by an average 6.4 percent per year from US$145.2 billion in 2010 to $230.3 billion in 2015 and to $503.9 billion in 2030…

Lockheed Martin and Reignwood Group to develop South China Sea ocean thermal energy conversion (OTEC) power plant. A memorandum of agreement between the two companies was signed recently in Beijing. Following the ceremony, both companies met with United States Secretary of State John Kerry during his first official state visit to the People’s Republic of China. The 10-megawatt offshore plant, to be designed by Lockheed Martin, will be the largest OTEC project developed to date, supplying 100 percent of the power needed for a green resort to be built by Reignwood Group.