Daewoo Shipbuilding to build $1 bn offshore facility for Brazil’s Petrobras

Daewoo Shipbuilding & Marine Engineering Co. has won a 1.1 trillion won ($1 billion) deal to build an offshore facility for Petroleo Brasileiro S.A., better known as Petrobras.

The South Korean shipbuilding company said on Monday the deal is part of a $2.3 billion project to construct a floating production, storage and offloading (FPSO) vessel for the Brazilian state oil company.

Daewoo Shipbuilding won the deal jointly with Italy's oilfield services company Saipem.

Under the contract, Daewoo will build the hull of the FPSO that stores crude oil and a part of the facility’s upper structure, while Saipem will construct the other parts.

The FPSO, to be built by the end of 2024, will be deployed at the Buzios field off the coast of Rio de Janeiro.

The facility will be able to produce 180,000 barrels of crude oil and 7.2 million cubic meters of natural gas a day, as well as store 2 million barrels of crude oil, according to Daewoo.

The latest contract marks Daewoo’s largest deal since 2014, when it won a 3 trillion won order for a crude oil production facility.

The oil production facilities market is expected to gradually recover from a pandemic-caused slump thanks to a recent rise in oil prices, which will help Daewoo win more orders for offshore plants, the company said.

Daewoo has orders worth $3.72 billion won so far this year to build 11 crude oil carriers, 9 LPG carriers, 4 container ships, 1 LNG vessel and 1 FPSO, achieving about 48% of its 2021 target of $7.7 billion.

Write to Kyung-Min Kang at Kkm1026@hankyung.com
In-Soo Nam edited this article.