Daewoo Shipbuilding Wins 1 Trillion KRW Order for Brazilian Offshore Facilities

Floating Production, Storage, and Offloading (FPSO) facility built by Daewoo Shipbuilding & Marine Engineering

[Asia Economy Reporter Choi Dae-yeol] Daewoo Shipbuilding & Marine Engineering (DSME) announced on the 14th that it has won an order for a Floating Production Storage and Offloading (FPSO) unit commissioned by Brazilian energy company Petrobras, in collaboration with the Italian engineering firm Saipem. The total project cost is 2.6 trillion KRW, with DSME's contract amounting to 1.0948 trillion KRW.

The FPSO ordered this time can produce 180,000 barrels of crude oil and 7.2 million cubic meters of natural gas per day. The crude oil storage capacity is 2 million barrels. DSME will manufacture the hull capable of storing crude oil and part of the topside structure. The topside structure, constructed by Saipem, will be received and finally installed at the Okpo Shipyard. The unit is scheduled to be built by 2024 and will depart for the Buzios field in Brazil, one of the world's largest deepwater oil fields.

DSME's order for offshore plants comes after more than two years since the 200 billion KRW semi-submersible oil production facility hull in 2019. It is the first time in seven years since the 3 trillion KRW oil production facility order in 2014 that the company has secured a multi-trillion KRW large-scale project. With Petrobras announcing plans for additional orders, the industry expects that domestic shipbuilders, including DSME, who have qualified for bidding, may secure further contracts.

A company official stated, "This order recognizes DSME's experience and technological capabilities in offshore plant construction," adding, "With the recent rise in oil prices, the oil production facility market is expected to gradually recover, so additional orders are anticipated."

Earlier this year, DSME secured orders for a total of 27 vessels and units, including 11 Very Large Crude Carriers (VLCCs), 9 Very Large Liquefied Petroleum Gas (LPG) carriers, 4 container ships, 1 Liquefied Natural Gas (LNG) carrier, 1 WTIV, and 1 FPSO. The total order amount reached 3.72 billion USD, achieving 48% of this year's target of 7.7 billion USD.

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