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Signs US$1 Billion in Shipbuilding Orders
Samsung Heavy Industries
Signs US$1 Billion in Shipbuilding Orders
  • By matthew
  • September 3, 2013, 06:24
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An existing LNG carrier that Samsung Heavy Industries has already built for Gaslog.
An existing LNG carrier that Samsung Heavy Industries has already built for Gaslog.

 

Samsung Heavy Industries signed altogether one trillion won (about US$1 billion) in contracts for 2 LNG vessels and 1 drillship last month.

On August 2, Samsung announced it wrapped up arbitration for returning the LNG-FPSO advance payments which had been on-going since last May with FLEX LNG. In 2008, FLEX ordered 4 LNG-FPSO from Samsung, but soon had the contract canceled due to internal financial difficulties to continue shipbuilding, as well as failure to charter ships. Since last May, both parties have been processing the arbitration for returning the advance payment Samsung received.

Samsung received US$495 million in advance, and FLEX requested a refund of US$300 million.

After negotiations, it was decided that Samsung return US$210 million regarding the canceled LNG-FPSO contract. This amount excludes all refundable expenses and compensation Samsung deserves. FLEX then ordered two new 174m3 LNG vessels and used the returned payment of US$210 million as an advance on them.

Samsung also obtained a shipbuilding order worth 441 billion won (US$402 million) for 2 LNG vessels on August 20 from Monaco-based Gaslog, and signed a US$550 million drillship building contract with a company in Oceania. 

So far this year, Samsung has signed a total of US$11.6 billion in orders, accomplishing 89% of its annual goal of US$13 billion.