Rain in the Drought
Daewoo Shipbuilding and Marine Engineering (DSME) is expected to resume the construction of an oil production plant worth 3 trillion won (US$2.6 billion), the largest plant project in the company’s history.
DSME said on July 18 that as the final investment decision on the Tengiz oilfield in Kazakhstan has been recently made by multinational oil companies including Chevron and ExxonMobil, it will kick off building the oil production plant, an order it obtained from Tengizchevroil LLP (TCO), the operator of the Tengiz oilfield
TCO is a consortium of oil majors including Chevron (50 percent shares) and ExxonMobil (25 percent). Its shareholders have approved a US$36.8 billion (about 42.5 trillion won) Tengiz oilfield expansion project in Kazakhstan.
In November 2014, DSME took the order from TCO to build modules for production facilities, including well control and oil processing facilities, which were worth about US$2.7 billion. The total modules ordered to the shipbuilding company amount to about 240,000 tons, enough workload for three years for DSME and its partner firms.
The Tengiz project is expected to be a great help for the shipbuilding company, which is suffering from financial difficulties caused by deferred deliveries of offshore plants, once it receives the first payment of US$130 million (about 150 billion won).