Samsung Wins $1.26bln Contract from BP
Samsung Heavy Industries, South Korea's major shipyard, build a floating production unit for British oil multinational BP that will be used in offshore drilling in the Gulf of Mexico, says a report in Yonhap.
The 1.5 trillion won ($1.26 billion) contract is the first for a floating oil production platform to be received by any of South Korea's big three shipbuilders in 18 months, according to Samsung Heavy.
Under the deal with BP Plc, Samsung Heavy will build a floating production unit (FPU) by August 2020.
The semi-submersible platform will be used for BP’s field development project, called ‘Mad Dog II,” in the U.S. Gulf of Mexico. Production began in the Mad Dog oil field in 2005.
Last month, BP sanctioned the US$9 billion Mad Dog Phase 2 project, with first production set to start in late-2021. The facility will be able to produce 110,000 barrels of crude oil, according to Samsung Heavy.
This is the first mega deal of the year 2017 for South Korean shipbuilders who are struggling to bring in new orders.
The big three of Samsung Heavy, Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering are restructuring, urged on by the government of South Korea to improve their bottom lines.
