Korea Shipbuilding & Offshore Engineering Wins Marine Equipment Order Worth 850 Billion KRW

The FPSO built by Hyundai Heavy Industries. Photo by Korea Shipbuilding & Offshore Engineering

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, the shipbuilding holding company of Hyundai Heavy Industries Group, has secured an 850 billion KRW contract for offshore facility construction in Brazil.

On the 11th, Korea Shipbuilding & Offshore Engineering announced that it signed a construction contract worth a total of 2.5 trillion KRW for one Floating Production Storage and Offloading (FPSO) unit ordered by Petrobras in Brazil, together with Singapore shipbuilder Keppel Shipyard Ltd.

Korea Shipbuilding & Offshore Engineering will undertake the hull construction, which provides the floating and storage functions of the FPSO, while Keppel will be responsible for manufacturing the topside facilities that produce and process crude oil. The total contract amount for the hull secured by Korea Shipbuilding & Offshore Engineering is 850 billion KRW.

The FPSO contracted this time measures 345 meters in length, 60 meters in height, and 34 meters in width, with a total weight of 128,000 tons. It can produce 180,000 barrels of crude oil and 7.2 million cubic meters (㎡) of natural gas per day.

This facility will be constructed using an Engineering, Procurement, and Construction (EPC) method at Hyundai Heavy Industries in Ulsan for the hull, after which the topside facilities will be installed at Keppel in Singapore. It is scheduled to be installed in the Buzios field, located 210 km southeast offshore from Rio de Janeiro, Brazil, in the second half of 2024.

This order follows the contract secured in January for a 27,000-ton gas compression platform, marking an offshore plant project won within three months. After about nine months of design, construction is expected to begin in the first quarter of next year.

Discovered in May 2010, the Buzios field in Brazil is the world's largest deepwater oil field with estimated reserves of 3 billion barrels. Petrobras currently operates four FPSOs in this area and plans to deploy eight more by 2030 to produce 2 million barrels of crude oil per day.

A representative from Korea Shipbuilding & Offshore Engineering stated, "As oil prices gradually rise, demand for offshore development is also recovering. Based on our construction experience and technological capabilities, we will continue to pursue a sales strategy that prioritizes profitability."

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