Korea Shipbuilding & Offshore Engineering Wins Myanmar Gas Field Offshore Plant Contract

Receipt of LOI for One 27,000-ton Gas Compression Platform from POSCO International Corporation

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, the shipbuilding holding company of Hyundai Heavy Industries Group, has succeeded in securing an order worth a total of 450 million USD for an offshore plant project in Myanmar.

Korea Shipbuilding & Offshore Engineering announced on the 8th that it recently received a Letter of Intent for one Gas Compression Platform (GCP) for the third phase of the Myanmar gas field project from POSCO International.

This Gas Compression Platform, weighing a total of 27,000 tons, will be connected to the existing gas production platform to increase the pressure of the gas field, maintaining a daily gas production volume of 500 million cubic feet (ft³). The facility will be installed at the Shwe gas field located offshore in the Bay of Bengal, Myanmar, by the first half of 2024.

Once the Myanmar government gives final approval for the development plan of the third phase of the Myanmar gas field project, Korea Shipbuilding & Offshore Engineering will carry out all processes including design, procurement, fabrication, transportation, installation, and commissioning under an Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC) contract.

This order is analyzed to be based on the deep trust built with the client after Korea Shipbuilding & Offshore Engineering successfully fabricated and delivered the currently operating gas production platform by participating in the first phase of the Myanmar gas field project with POSCO International in 2013.

A POSCO International official emphasized, "This project will serve as an opportunity to strengthen the energy value chain within the group alongside POSCO Group’s core focus on the food business, and this development cooperation with Korea Shipbuilding & Offshore Engineering will enhance synergy in the energy sector through securing competitiveness in the domestic offshore energy industry and creating an industrial ecosystem."

A Korea Shipbuilding & Offshore Engineering official stated, "It is significant to have succeeded in securing a new offshore facility order amid the marine market downturn caused by the spread of COVID-19," adding, "With international oil prices recently rebounding, offshore gas field development is expected to continue, and we will actively pursue new orders."

Meanwhile, Korea Shipbuilding & Offshore Engineering secured an order worth approximately 450 million USD for a semi-submersible floating production system (FPS) from the U.S. oil developer LLOG Exploration in October 2018 and is currently fabricating the facility with the goal of completion in the first half of 2021.

This content was produced with the assistance of AI translation services.