Friday, September 16, 2011

Hyundai-Samsung vie for FPSO

 

Hyundai Heavy Industries and Samsung Heavy Industries of South Korea clashed in a bid to win $2bn worth of Nigeria's Egina FPSO newbuilding order.

Egina FPSO is ultra-large offshore plant, with over 2m-barrel of fuel capacity. The Egina oil field  is located 150km off the coast of Nigeria, operated by Total. The French oil major, which has 24% stake in Egina, plans to sign the final newbuilding contract by the end of 2011, to begin production from 2015.

Triangular competition is under way with Hyundai, Samsung and China's Dalian Shipbuilding Industry Company (DSIC) in a consortium with China Offshore Oil Engineering Corporation (COOEC) and Technip.    

Even though DSIC is less likely to win the project with no previous experience in building ultra-large FPSO, China National Offshore Oil Corporation (CNOOC), mother company of COOEC, is influential in the bid, having 45% stake in Egina oil field.

On the other hand, Hyundai has the upper hand, having already built and delivered Usan FPSO of Nigerian offshore oil field with its own technology. Samsung also eyes this sector with penning small-and-medium size FPSOs this year.

Hyundai and Samsung have inked newbuilding orders amounting $16.7bn and $14.6bn each y-t-d. In case of Samsung winning this project, Samsung may be able to beat out Hyundai in annual new order for 2011.

However, Korea should be alert to Chinese consortium. Shipbuilding player said, "This is the first time to face China in an international FPSO newbuilding market. China's offshore plant newbuilding is also expected to grow."



Published : September 16, 2011



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Shipbuilding manpower shrink




According to the Korea Shipbuilders' Association (Koshipa)'s headcount survey of nine member shipbuilders, the total number of workers in the shipbuilding division, including subcontractor workers, turned out to be 96,720 people by the end of 2010, decreased by 8% on a year ago.

Large shipbuilders downsized mainly with production employees and small & medium shipbuilders' workforce decreased amid management crisis.

Downsize in Korean shipbuilding industry workforce is the first time since 1998 following Asian monetary crisis.

Meanwhile, manpower of 16 shipbuilders, including seven non-Koshipa-membership S&M shipbuilders, declined by 7% to 117,746 people. Korean shipbuilding industry's growth shown over the past ten-odd years has turned around.

Korea's main shipbuilders had temporarily reduced the number after 1997, however, has kept increasing employees along with rapid growth of shipbuilding market thereafter.

Meanwhile, the total number from offshore department of Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries, Hanjin Heavy Industries & Construction and STX Offshore & Shipbuilding maintained its size with 7,104 people, just down 0.2% on the end of 2009.



Published : September 16, 2011



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Hankuk Carbon-Samsung $75m deal




Hankuk Carbon of South Korea announced on Sep 15 that it signed a contract to supply ultralow-temperature insulated materials for LNG-carrier cargo hold amounting KRW 84.29bn ($75.38m) with Samsung Heavy Industries

The contract covers 64.41% of Hankuk Carbon's recent annual sales.



Published : September 15, 2011







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Thursday, September 15, 2011

Chinese in Post-Crisis




Liu Mimg Kang, a president of China Banking Regulatory Commission, recently said that during a global financial crisis three years ago Chinese shipbuilders had the orderbook of three-year workload, however, now they are in a crisis with not much improved newbuilding orders.

Also, he added that worldwide drops of new order is one of the leading indicators of upcoming global depression.

According to China Association of National Shipbuilding Industry (CANSI), China's shipbuilding output and newbuilding order was 7.53m dwt and 1.98m dwt each, newbuilding order being smaller by 5.55m dwt than deliveries.

Current downtrend was shown for nine months, leading to shrinking orderbook.

CANSI said that half of Chinese shipbuilders had secured no newbuilding order in the first half of this year and ten of the main 43 shipbuilders did not book any newbuilding, which reveals polarization.

Official from CANSI forecasts that Chinese shipbuilders would face a wind of change, only outstanding shipbuilders surviving recent difficulties.



Published : September 15, 2011








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Japan LNG use hit record




Japan's 10 utilities consumed a record 4.81 million tonnes of liquefied natural gas in August, up 15.4 percent from a year earlier, industry data showed on Tuesday.

They burned more gas to offset a fall in nuclear power generation.

The utilities produced 84.18 billion kilowatt-hours of electricity in August, down 12.1 percent from a year earlier, the Federation of Electric Power Companies of Japan said.

The 12.1 percent fall was the biggest ever year-on-year percentage decline for the month of August as businesses and households ramped up energy saving measures to help avert power outages.



Published : September 15, 2011






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LNG Pie Getting Bigger




South Korean shipbuilders seem to benefit from currently expanded worldwide insecurities in nuclear power plants.

Sources said on Sep 12 that due to explosions of nuclear wastes dump sites in France, alternative energy market, such as LNG, etc., and related business are forecast to grow bigger.

Currently, Japan, as well as Germany, Swiss, Italy, etc., after Fukushima nuclear power plant accident in March, cut back or scrap nuclear power plant.

Accordingly, LNG has become the alternative energy with its price rising by more than 20% after March and new LNG carrier orders soaring.

Among Korean shipbuilders, Samsung Heavy Industries have inked a total of 17 LNG carriers year-to-date, Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries have signed eight and six vessels, respectively. STX Offshore & Shipbuilding successfully booked two LNG carriers from Sovcomflot of Russia in June.

As explosions arisen in France after Japan's nuclear power plant crisis, uptrend in LNG is forecast to continue.

Korean shipbuilders, in particular, remaining strong in high-value LNG-FSRU and LNG-FPSO, are expected to continue robust.

Industry players said, "Nuclear power plant accident, along with rising demand in low-carbon energy and sudden increase in emerging countries' LNG consumption, led by China, surged LNG demands," and added, "Aside from multi-purpose high-value vessel, such as FSRU, offshore plant business to develop gas field is also anticipated to grow as well."



Published : September 15, 2011








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