Samsung Heavy wins US$2.5 bln deal for offshore facility

SEOUL-- Samsung Heavy Industries Co., a major shipyard here, said Friday that it has clinched a US$2.5 billion deal to build an offshore facility.

Under the deal with Italian energy company Eni, Samsung Heavy, along with France's Technip and Japan's JGC, will build the floating LNG facility by June 2022, the company said.

Samsung Heavy's share in the deal is roughly $2.5 billion.

The FLNG facility, 439 meters long, 65 meters wide and 38.5 meters high, can process 3.4 million cubic meters of gas annually.

The facility will be deployed for the Coral South Project, which develops gas wells in seas 250 kilometers northeast off the coast of Mozambique, according to Samsung Heavy.

With the latest deal, Samsung Heavy has won deals valued at a combined $4.8 billion to build a total of 13 ships so far this year.

Partners in the field development include Korea Gas Corp. (KOGAS).

Meanwhile, KOGAS said earlier it plans to invest in the Area 4 of the Coral South project. The state-owned utility company owns a 10 percent stake in the Coral gas field.

KOGAS said it will invest $513 million in the FLNG project through KG Mozambique, its 100 percent-owned subsidiary, from 2017 to 2022, and guarantee up to $640 million of the project's debt funding.

Source: Yonhap News Agency

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