Friday, December 23, 2011

Drillship, "To be continued"

New orders for ultra-deepwater drillship, used to lead newbuilding market in the first half 2011, has slowed down a bit in H2. However, newbuildings would resume to be sealed from the second quarter 2012.

Analyst Jun Jae-Chun from Daishin Securities said that if additional drilling is permitted next year, new order would surge from the second quarter.

Daishin's Jun pointed out that as being unable to find charterers for already ordered drillship, its new order had slowed down in H2. New order for this year covers 1.5 years, and many among 33 newbuilds have not been signed charterage.

Jun also analyzed that over $90 per barrel of West Texas Intermediate is a good reason to boost demand for subsea oil field development.

According to Jun, slow proceeding of Gulf of Mexico project caused a standstill freight and being unable to find charterers.

Development project, however, is expected to move faster from next year, and newbuilding drillship would start to be contracted from as late as Q2.

Published : December 23, 2011


Wartsila new design for pipelayer

Wärtsilä, the marine industry's leading solutions provider, is to supply the design and propulsors/positioning system for a series of two new flexible pipe laying vessels (PLVs) for advanced operations.

The vessels are to be built at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in the Republic of Korea.

The owner and operator of the vessels is a joint venture formed between France-based energy industry company, Technip and the Brazilian oil & gas industry company, Odebrecht Óleo & Gás (OOG). The vessels will work on a long-term charter in Brazilian waters for Petrobras.

The contract represents a major breakthrough for Wärtsilä Ship Design in Brazil and is further recognition of Wärtsilä's leading position in ship design with one of the world's major shipyards. The new VS 4146 PLV design has been tailored to the stringent requirements of both the owners and Petrobras.

The vessels, which have a high pipe lay tension capacity of 550 tonnes, are designed to achieve optimal fuel consumption in the design conditions, and to meet the need for efficient flexible pipe laying operations. They will be utilized mainly to install umbilical and flexible flow lines and risers to connect sub-sea wells to floating production units in waters more than 2,500 metres deep.

"The selection of Wärtsilä Ship Design for this important and challenging project reflects our strong global track record in designing state-of-the-art pipe laying vessels," says Riku-Pekka Hägg, Vice President Ship Design, Wärtsilä Ship Power. "These ships will be a high profile representation of our capabilities in this area for oil and gas companies operating in Brazilian waters."

DSME, Technip, and OOG are all existing customers of Wärtsilä having earlier ordered equipment and/or design services for numerous newbuild projects.

Published : December 23, 2011


Samsung links ship & offshore

Samsung Heavy Industries of South Korea announced on 21 December that it integrated designing function of its shipbuilding and offshore sectors to deal more effectively with increasing new order for offshore facilities.

The Geojae-based yard carried out reorganization of its designing function on 19th to reinforce offshore design due to currently surging new order in the sector.

Samsung used to subdivide designing into shipbuilding design, basic design, offshore design, passenger ship design, etc., but now it would be able to combine special methods of shipbuilding design with offshore design and maximize the synergy effect.

Published : December 22, 2011


Thursday, December 22, 2011

Big3 reap $50bn orders

Although South Korea's Big 3 successfully reached order targets in 2011, market situation would be unfavorable next year due to a decrease in new orders by European shipowners as Eurozone financial crisis is being prolonged.

Big three all have already met or exceeded 2011 new order target this year despite slowdown in commercial ship market, owing to surging new order for offshore plant and specialized ship.

Overall new order for ship and offshore plant of major three builders, Hyundai Heavy Industries, Samsung HI and Daewoo Shipbuilding & Marine Engineering, totals $49.6bn, the second largest after $68.5bn in 2007.

Hyundai, including Hyundai Samho Heavy Industries reached its target, by securing 86 vessels of $19.8bn in shipbuilding and offshore & engineering divisions. Samsung and Daewoo all exceeded its new order target by over $3bn with 49 vessels of $15bn and 52 vessels of $14.8bn, respectively.

Market player said, "Korean builders have widened gap between other countries, such as China, Japan, etc., by leading high-value market with their advanced technical skills. As commercial ship market is expected to remain suppressed in 2012, Korea would keep concentrating on offshore plant market."

Meanwhile, most people forecast that yards would face difficulties in winning new order next year and major three builders are known to set 2012 targets sliced by 20% on this year.

Published : December 22, 2011


MAN wins order for TCS-PTG

MAN Diesel & Turbo has won a firm order from China-based Samjin Shipbuilding for a pair of Turbo Compound Systems, including a Power Turbine and Generator (TCS-PTG).

The TCS-PTGs will be installed on two 4,700 teu container vessels currently being built by Samjin.

The vessels, which are powered by individual MAN B&W 6S80ME-C9.2 low-speed engines, will be operated by German ship owner Reederei Horst Zeppenfeld.

According to the company, the order also includes an option for two extra vessels.
The company said that along with the 2 + 2 × TCS-PTG20s, it will also supply 2 + 2 × TCA88 turbochargers for €4m.

Delivery of the equipment is scheduled to start by the end of 2012.

The order represents the first such instance for a marine application for MAN Diesel & Turbo's new generation of TCS-PTGs after previous applications at stationary power plants in London and Panama.

The installation of TCS-PTG units will help Zeppenfeld save fuel and also reduce the operating costs of their gensets.

The company said that in many cases, the installation of a TCS-PTG unit also allows the user to minimise the installed genset power output and reduce corresponding investment costs.

The TCS-PTG recovers up to 5% of the energy from a main-engine's exhaust gases and as an alternative, the company offers an STG (steam turbine and generator) system that recovers energy from an exhaust-gas steam boiler.

Published : December 22, 2011


Hyundai's world-best VLOO

South Korea's Hyundai Heavy Industries announced on 21 December that its three products including very large ore oil carrier (VLOO), etc, were selected as world-best from Ministry of Knowledge Economy (MKE).

Accordingly, Hyundai now secures 34 world-best products, the largest number among Korean companies.

Since 2001, MKE has nominated products as 'World best product' which place within world top five and secure over 5% of global market share among overall products of over $50m of yearly global market and more than $5m of yearly export.

Hyundai's 'world best' VLOO is the only dual-purposed carrier in the world, which transport dry and wet cargo at the same time.

Published : December 21, 2011


Wednesday, December 21, 2011

2011: High value-centered

Global new orders this year have sharply decreased as low as in 2009, when shipyards suffered severe orders drought right after global financial crisis.

However, while new order for commercial ship plummeted, new order in terms of value is twice larger than 2009 due to massive contracts of high-value specialized vessels.

Meanwhile, newbuilding delivery is to exceed that from 2010, hitting all-time high.

According to Clarksons, new order in the first 11 months dropped to 1,141 vessels of 59.6m dwt, as low as 55.2m dwt in 2009. And it is just one fourth of 273m dwt during a boom in 2007 and falls short of half of 137.5m dwt from last year.

In terms of gt, cumulative 47.7m-gt newbuildings were ordered from January to November and about overall 50m-gt are expected to be newly ordered in 2011.

Meanwhile, new order value during January-November period turns out to be around $87.2bn, which doubles $40.4bn in 2009 and is close to $99.8bn from last year. This represents high-value specialized ship orders, such as LNG carrier, drillship, ultra-large boxship, etc., have led the newbuilding market this year.

In particular, South Korean builders sweeped new order market for high-value ships, winning $46.7bn, 24.5m gt of new order year to date, while Chinese secured $18.1bn or 16.9m gt.

Owners in the US placed $15.7bn of new order, Greece ordered $12.3bn, Norway $7.9bn, Denmark $6.7bn and Brazil $5.8bn. China only newly ordered $4.6bn.

Meanwhile, 2,259 vessels of 146.2m dwt have been newly delivered in the first 11 months and about 159.4m-dwt delivery is estimated for 2011, exceeding 151.1m dwt in 2010.

Newbuilding delivery would be in a downturn with 149m dwt in 2012 and 116m dwt in 2013 going forward.

In terms of gross tonnage, 90.3m gt has been delivered by November and 99m gt is expected to be delivered for this year, also exceeding 96.9m gt of last year.

China and South Korea would make a record-high deliveries of 67m dwt or 34.8m gt and 53m dwt or 32.4m gt respectively this year.

As of early December, world newbuilding orderbook stands at 6,195 vessels of 375m dwt, constantly in decrease after 618m dwt in the end of 2008, 535m dwt in 2009 end, and 487m dwt in 2010 end.

In terms of gt, newbuilding backlog recorded 240m gt as of the early this month, following 393m gt in late 2008, 335m gt in late 2009, and 299m gt in the end of 2010.

Published : December 21, 2011


Daewoo builds SMART yard

Daewoo Shipbuilding & Marine Engineering of South Korea is to be developed as a SMART yard, by building LTE (Long Term Evolution) network.

The Geojae-based yard and SK Telecom have a signing ceremony for LTE network on 20 November.

Now Daewoo is to construct LTE network in its Okpo yard by the end of 2011.

Daewoo expects to enhance operation efficiency through 'Smart Work.' Managers and staffs would be able to transmit large-capacity data with smart phone or tablet PC and conduct management of production, quality control, inventory, etc., on basis of LTE.

Daewoo's chief manager said, "LTE would contribute to make safer and more efficient yard. Owing to SMART Shipbuilding, Daewoo would reinforce its market competitiveness."


Daewoo exports 1st submarines

Daewoo Shipbuilding & Marine Engineering signed three submarines on Dec. 20th with Indonesian Navy, exporting newbuild submarines for the first time as South Korean shipbuilders.

The KRW 1.3trn (about $1.1bn) deal includes building three 1,400-ton submarines.

LOA of the submarine is 61.3m, accommodating 40 crew. It has eight weapon tubes for launching torpedo, mine, etc.

The trio are scheduled for delivery by the first half of 2018.

Daewoo was first handed down German technology and built a 1,200-ton submarine in 1988, and it now succeeded in developing its own technology-based submarine for export.

Daewoo won the massive project beating rivals from France, Germany, Russia, etc.

Meanwhile, the world's second largest shipbuilder has newly penned 52 ships and offshore structures worth around $14.8bn so far this year, over-achieving its annual order target of $11bn by about 35%.

Published : December 21, 2011


Tuesday, December 20, 2011

Fred ends HHI drillship option

An option on a drillship newbuilding secured by Fred Olsen Energy at Hyundai Heavy Industries has lapsed.

Oslo-listed Fred Olsen has been hedging its bets on the vessel which it originally needed to firm by October, but it confirms the unit will not see the light of day.

In a statement to investors Fred Olsen does not offer any reason as to why it let the option lapse.

Fred Olsen turned to HHI in April with a potential two drillship order worth over $1.2bn. Delivery of the firm vessel is slated for the third quarter of 2013.

Published : December 20, 2011


BWM cost spurs VLCC scrapping

The costs associated with meeting the upcoming Water Ballast Management Convention (WBC) could prompt more VLCC scrapping, a top shipbroker says.

“Given the recent trading conditions, the rapid fall in asset values and spiralling bunker prices, early implementation of the WBC could provide the springboard to scrap first generation double hull tankers 15 years of age and older,” says EA Gibson.

Quoting Wartsila Water Solutions Gibson says fitting a VLCC with the required Ballast Water Management (BWM) equipment “can currently put an owner back as much as $8m”.

Recent VLCCs sold for demolition have generated returns of around $20m, at the same time the second-hand price for a 15 year old has fallen to around $24m.


Daewoo sets Cloud System

Daewoo Shipbuilding & Marine Engineering announced on 19 December that it would start building a next-generation document management system in the end of this year to establish cloud computing.

Documents will be saved in server, not in personal computer, to reinforce their storage and application. The project plans to be applied in overall group subsidiaries.

The South Korean yard is to phase out of its existing document management system.

As the first data-centered yard, Daewoo would have a great effect on other builders.

Daewoo recently issued a request for proposal to introduce enterprise content management (ECM) for document management and IBM Korea and other ECM package suppliers have been requested the proposal.

Daewoo is to start system design and the new management system would provide cloud computing which minimizes information leakage by personal computer and offers more convenient usage of information.

Published : December 20, 2011


Monday, December 19, 2011

Samsung tops world orderbook

Samsung Heavy Industries of South Korea takes the first place in backlog as of the early December, ahead of Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries.

According to Clarksons, Samsung recorded 179 vessels or 8.269m cgt of backlog, followed by 2nd place Daewoo (159 vessels of 7.499m cgt) and 3rd ranking Hyundai, including Gunsan yard (167 vessels of 6.803m cgt).

Published : December 19, 2011