Samsung Heavy inks contract for 2 floating production units

Samsung Heavy Industries said yesterday it will sign a contract to build two offshore plants worth $700 million.

The company said it has already started working on the floating production units (FPUs) ordered by Royal Dutch Shell, although the contract hasn’t been inked yet, thanks to an exclusive contract it signed in April stating that the company will build Shell’s FPU facilities for the next 10 years.

This FPU will be Samsung’s first construction for Shell after the April contract.

The company said the deal for this FPU will be finalized when the general outline of the facility has been drawn up because it will then decide on the budget for the project, including the amount of building materials it will need.