Daewoo Shipbuilding gets $1.24 billion order

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Daewoo Shipbuilding gets $1.24 billion order

Daewoo Shipbuilding and Marine Engineering (DSME) said yesterday it has secured a $1.24 billion order to build two drill ships for an African company.

The nation’s third-largest shipbuilder said the vessels will be built at Okpo Shipyard in Geoje, South Gyeongsang, and delivered at the end of 2015.

DSME said its e-Smart drill ship is capable of operating in waters of 3.6 kilometers (2.23 miles) deep and drilling to depths of 12 kilometers.

In addition, the new model will have two derricks, one 1,400 tons and the other 1,250 tons. One derrick will be used to dig exploratory holes, while the other will be used to assemble a drilling pipe. This will reduce working hours by 25 percent compared to a drill ship with one derrick.

The company also will install two blowout preventers to increase safety. A blowout preventer is a device to handle extreme pressure and flow during drilling.

DSME has secured orders for six drill ships this year. It has won 42 total orders worth $11.2 billion.

After the announcement, DSME stock jumped 2.94 percent to 36,800 won ($34.50) at the main bourse yesterday.

Meanwhile, DSME is also set to build the world’s largest floating storage regasification unit for liquefied natural gas.

Japan’s Mitsui O.S.K. Lines said it has contracted with DSME to build a regasification storage unit with a capacity of 263,000 cubic meters (9,287.80 cubic feet). MOL and a subsidiary of GDF Suez recently signed a 20-year charter party for a floating storage regasification unit to be used in a liquefied natural gas import project in Uruguay led by Gas Sayogo.

MOL said the DSME regasification storage unit should be completed in September 2016 and delivered to Montevideo, Uruguay.

DSME officials said the contract hasn’t been finalized.

BY JOO KYUNG-DON [kjoo@joongang.co.kr]
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