Samsung signs contract with Shell for LNG-FPSO
Tuesday, 16 March 2010 15:11

Samsung Heavy Industries recently announced that it has won contracts for nine oil tankers from four European shippers and for one marine structure from a southeast Asian client. It also announced that it had signed a contract with Royal Dutch Shell for the supply of one LNG-FPSO.

Despite the continued signs of the financial crisis, shippers are securing more oil tankers to respond to OPEC’s potential production increase, which has been anticipated since the oil price recently rose above US$80.

"In addition to the contracts for oil tanker supplies, the company has also recently signed a contract for building one unit of LNG-FPSO with CEO Tieri Philenco Thierry Pilenko of Technip and CEO Mattias Bichsel of Royal Dutch Shell, the joint bidders, in Paris, France,” Samsung’s CEO Roh In-sik said.

“This marks the full-fledged launch of a historic project that will be recorded as the world’s largest contract of its kind."

SHI signed a long-term exclusive contract with Royal Dutch Shell for the supply of LNG-FPSO at the end of July 2009. According to the contract, the company will be the exclusive supplier to Royal Dutch Shell of LNG-FPSOs for the next 15 years. The contract amount for the body of the recently ordered LNG-FPSO will be fixed in early April, while the upper structure equipped with LNG production and liquefaction functions will be confirmed at the end of the year. Shipbuilding will begin in 2012, and the ship will be delivered in 2016.

The industry predicts that the value of the project will reach US$4 billion or US$5 billion per unit.

The LNG-FPSO will have a length of 468 metres, a beam of 74 metres and a height of 100 metres. It will displace 200,000 tonnes.

Samsung Heavy Industries and Technip will jointly design the ship, and Samsung’s Geoje Shipyard will exclusively build the ship. When delivered, the LNG-FPSO will produce LNG of 3.5 million tonnes per year at LNG fields in Australia, starting in 2016.

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