Hyundai Meets 2021 Order Target with US Offshore Platform Contract
Hyundai Heavy Industries (HHI) has secured a $577 million deal from Beacon Offshore to build a floating production system (FPS) for its Shenandoah field in the US Gulf of Mexico. In a regulatory filing, HHI holding company, Korea Shipbuilding and Offshore Engineering (KSOE) said that it would undertake the first phase of construction for the offshore crude oil storage facility. The order is the latest in a series of moves by the South Korean shipbuilding industry to diversify and expand the scope of their construction projects. With this order HHI has met 100 percent of its order targets for the year.
The floating production storage platform will be semi-submersible, measuring 298 feet along each side with a height of 295 feet. It will have the capacity to produce around 100,000 barrels of crude oil and 4 million cubic meters of natural gas per day.
Under the terms of the contract, Hyundai will undertake the engineering, procurement and construction. It will take about one year for HHI to design the facility that is expected to be completed and deployed in 2024.
HHI said it has previously built and delivered a similar platform for Murphy Oil Corporation.
“As the price of oil is rising, we expect to see constant orders for offshore construction to be made from Americas and from countries such as Qatar,” a KSOE official said.
With this deal, KSOE’s total backlog amounts to $17.4 billion, surpassing this year’s target of $14.9 billion.