Daewoo Shipbuilding Blazes Past $12 Billion in Sales for 2011

Discoverer Enterprise dual activity drillship
The Discoverer Enterprise, located in this picture at Ingalls Shipyard, is an example of a dual activity drillship. The two yellow fixtures on top of the derrick are compensators that maintain a steady "weight on bit" while the ship heaves up and down at sea.

One of the world’s most prolific shipbuilders, Daewoo Shipbuilding and Marine Engineering (DSME), located in Okpo, Korea, hit their sales target for this year by winning new orders.

DSME won a new order for a $1.4 billion fixed offshore platform with Chevron, the global oil company on 14th October.  The next day, DSME won a $550 million order for dual-activity drillship for an undisclosed USA-based offshore drilling company.

The fixed platform consists of a Topside which is 37,000 tons scaled and a Steel Gravity Based Substructure supporting the Topside scaled at 27,000 tons. It also possesses a Gas-liquid Separation System and Dehydration & Compression System, so that it is possible to refine 5,500m³ of natural gas per day.  This fixed platform will be delivered by the second half of 2014 from Okpo shipyard. It will provide service to the Wheatstone field which is located 200km north of the Australian Northwestern City, Onslow.

DSME has signed this contract as a turnkey project with Chevron, so DSME is in charge of the entire process of building this platform including design, purchasing, production, and installation. The contract is the result of close relationship between DSME and Chevron, so it is expected that the construction process will be as smooth as previous collaborations.

As well as the fixed platform contract, DSME also received orders from Chevron for a total of 11 offshore projects which include one Floating Production Storage and Offloading (FPSO) vessel and ten offshore projects.

Mr. Sang-Tae Nam, the President & CEO of DSME said, ‘DSME and Chevron have maintained a strong relationship through the successful deliveries of eight offshore projects and FPSO over 30 years. Also, this contract yet again proves DSME`s high level of competence in turnkey projects.

DSME’s new order for a DSME 12000-type drillship, a rig developed using DSME`s own technology, has the Ultra Deep Sea Water Drilling System allowing it the capability to drill while dynamically positioned in up to 12,000 feet of water. Additionally, this drillship is designed to load 3,200 tons of drilling pipes and casings,  a capacity far larger than the former drillship design which was able to load 2,200 tons.

This drillship also possesses a Dual Derrick so it is possible to drill for oil and assemble casing strings simultaneously. As a result, this system is able to reduce the working time for drilling by 25% when compared to a Single Derrick Type.

On 18th October, DSME won a new order for two, 170,000m³ LNG Carriers with Sweden based Stena Bulk. The value of this contract is approximately 400 million USD and these vessels will be delivered in 2014.

Stena Bulk is a subsidiary company of the Stena Group, the biggest Group in Sweden, and manages more than 90 vessels. Earlier this year, Stena Bulk entered into the LNG market by taking ownership of three LNG carriers constructed by DSME. They will expand their fleet of LNG carriers with this contract and plan to fully target the LNG shipping market.

This latest contract puts DSME`s 2011 secured orders at 46 vessels and offshore platforms worth USD 12.5 billion.