DSME gets $200M contract to build offshore facility

Daewoo Shipbuilding & Marine Engineering (DSME), the world’s third-largest shipbuilder by order backlog, said Friday it has received a $200 million offshore facility order from a major U.S oil company.

DSME said it will build the hull of a semi-submersible floating production unit for Chevron and said it is expected to be delivered by 2022, the company said in a statement.

The deal marks the first time in five years that the shipyard has clinched a contract to build an offshore facility.

The offshore facility will be stationed in the Gulf of Mexico and have a daily production capacity of 75,000 barrels of crude oil, DSME said.

The shipbuilder expects the latest order will help keep its shipyard operating.

Its previous offshore facility order was won in 2014.

With the latest deal, DSME has won orders worth $5.95 billion so far this year to build 31 vessels, achieving 71 percent of its annual target of $8.37 billion.

The shipyard has an order backlog totaling 80 ships valued at $20 billion.

Yonhap