Hangu Joseon Marine Wins Order for One Offshore Plant Worth 660 Billion KRW

Manufactured by Ulsan Hyundai Heavy Industries, to be installed offshore Shenandoah, USA in 2024

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, the shipbuilding holding company of Hyundai Heavy Industries Group, has secured a $660 billion contract for U.S. offshore facilities.

Korea Shipbuilding & Offshore Engineering announced on the 6th that it recently signed a contract worth 659.2 billion KRW with a U.S.-based crude oil development company for a semi-submersible floating production system (FPS) construction project.

The FPS ordered this time measures 91 meters in length, 91 meters in width, and 90 meters in height, capable of producing 100,000 barrels of crude oil and 4 million cubic meters (m³) of natural gas per day.

This facility will be constructed using an Engineering, Procurement, and Construction (EPC) turnkey method at Hyundai Heavy Industries in Ulsan, with production expected to begin in the third quarter of next year. It will then be installed at the Shenandoah field, located 300 kilometers south of Louisiana, USA, in the second half of 2024.

Analysis suggests that the contract was secured due to Korea Shipbuilding & Offshore Engineering's diverse offshore construction capabilities and the trust built by successfully launching the King's Quay FPS for Murphy Oil in the U.S. in June. The King's Quay FPS project, won in 2018, was successfully delivered by adhering to the construction schedule and maintaining strict safety management, achieving '2.5 million hours without accidents.'

Korea Shipbuilding & Offshore Engineering has secured three offshore plant projects this year alone, including a 500 billion KRW gas field platform in Myanmar in January and an 850 billion KRW FPSO in Brazil in May.

A representative from Korea Shipbuilding & Offshore Engineering stated, "With rising oil prices, continuous offshore project orders are expected in regions such as Qatar, the Americas, and South America," adding, "We will continue to pursue a sales strategy prioritizing profitability."