Samsung Heavy expected to win up to $50 bln order from Royal Dutch Shell

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SEOUL, July 29 (Yonhap) -- Samsung Heavy Industries Co., the world's
second-biggest shipbuilder, said Wednesday it has signed an agreement with Royal
Dutch Shell Plc, Europe's largest oil company, to construct liquefied natural gas
(LNG) facilities for up to 15 years.

Under the agreement, Samsung Heavy and Technip SA, a French oil and gas producer,
will design, construct and install multiple floating LNG facilities.
Royal Dutch Shell, headquartered in Hague, is widely expected to place orders for
up to 10 so-called floating production storage and offloading (FPSO) facilities
at a total value of US$50 billion, the world's biggest, according to Samsung
Heavy.
The FPSO vessel may be as long as 456 meters, as wide as 74 meters, as high as
100 meters, and be able to store 450,000 metric tons of LNG, according to
Samsung.
The two sides will agree on price, delivery date and other details later, it said.
Royal Dutch Shell is seeking to produce 3.5 million metric tons of LNG in seas
off Australia's northwestern coast starting from 2016.
Shares of Samsung Heavy were trading at 32,500 won on the Seoul bourse as of 1:28
p.m., up 4.55 percent.
Samsung Heavy delivered two oil FPSO platforms to Royal Dutch Shell in 2002. The
shipbuilder developed the world's first LNG FPSO platform in 2008.
Samsung Heavy has contracts to build four such facilities, each costing around
$1.2 billion.
Royal Dutch Shell posted a net profit of $26.5 billion last year on sales of $458
billion.
Samsung Heavy also said it is also in talks with companies in Europe for similar
orders.
sam@yna.co.kr
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