Samsung Wins $963mln FPSO Contract

Maritime Activity Reports, Inc.

April 23, 2019

Geoje Shipyard. Photo: Samsung Heavy Industries

Geoje Shipyard. Photo: Samsung Heavy Industries

South Korean shipbuilder Samsung Heavy Industries (SHI) has received an order for the construction of a floating production, storage and offloading (FPSO) unit on the condition that the client receives approval from its partner and government.

The contract worth KRW 1.1 trillion (US$963 million) has been signed with an unnamed Asian shipowner, said a report in Yonhap.
The FPSO will be constructed at its main shipyard in Geoje, some 330 kilometers south of Seoul, the company said in a regulatory filing.

Although Samsung Heavy didn't announce the name of the Asian customer, Yonhap, qouting industry sources, said that its FPSO will be used for Indian energy giant Reliance Industries' MJ deep-water gas and condensate project off India's east coast.

Including the newest contract, the shipbuilder has so far this year secured orders for a total of seven LNG carriers and one FPSO, worth USD 2.3 billion.

Samsung Heavy Industries' FPSO contract volume amounted to 21 percent of its sales last year. By signing the deal, Samsung Heavy Industries could reach 29 percent of its order target of US$7.8 billion for this year. The order is expected to help the shipbuilder attain its goal this year.

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