Samsung Heavy Industries wins world's largest turn-key contract to supply FPSO, with a total construction cost of approximately USD 3.0 billion.

Samsung Heavy Industries announced on 13th that its Nigerian subsidiary(Samsung Heavy Industries Upstream Nigeria) received an LOA to sullply a FPSO, and the LOA recently gained the status of an official contract. According to the LOA, Samsung Heavy Industries will build a FPSO, the world's largest offshore plant in 2013.

Samsung Heavy Industries Upstream Nigeria will sign a contract with TUPNI as a contractor and Samsung Heavy Industries will sign a contract with Samsung Heavy Industries Upstream Nigeria as a subcontractor to build a FPSO.

This FPSO will be 330m long, 61m wide and 34m high. Its storage capacity will be 2.3 million barrels, and the topside alone will weigh 36,000 tons.

The total construction cost will be about USD 3.0 billion, which is the highest among ever among existing FPSO contracts.

Samsung Heavy Industries will deliver a FPSO through a turn-key contract that includes design, procurement, building, transportation and pilot operation of the FPSO.

Samsung Heavy Industries won the contract thanks to the technological excellence it has developed through years of experience in the offshore plant sector, as well as its localization strategy to comply with local production regulations by building the production base at the local site in Nigeria.

Samsung Heavy Industries plans to produce a large part of the topside of the FPSO at local sites by building the production base jointly with a Nigerian firm.

As it is expected that Nigeria will have continued demand for offshore facilities worth dozens of billions of dollars in the future, Samsung Heavy Industries plans to utilize the production base as its local production base after completing this FPSO project, giving it a unique presence in Nigeria's offshore plant market.

CEO Dae-young Park of Samsung Heavy Industries said, "Following the turn-key contract to supply the ultra-large offshore plant worth USD 2.7 billion that was signed with INPEX in 2012, our offshore plant construction competencies have gained global recognition by winning another ultra-large turn-key contract. We will lead the global offshore plant market with our technological excellence."