Yamal Project

 

Daewoo Shipbuilding and Marine Engineering (DSME) is having trouble with the Yamal Project, which was promoted extensively as the greatest single order in the company's history.

Last month, the Yamal Project contract was signed, despite the slow progress and the domestic and overseas situations. The delay was due to continued disputes between Russia and the Ukraine. Also, Russian gas producer Novatek and the DSME have been wary of the Russian government, as President Putin pushed for the company to place its shipbuilding orders with a local Russian shipbuilder.

Because of this, the Yamal Project has been delayed for more than six months. It was supposed to be completed last May, but there are currently five orders left out of the original 15.

According to the DSME on Nov. 4, they signed a contract to reserve about 15 icebreaking LNG ships for the Yamal Project with Novatek last July.

After that, the DSME signed the first order contract with Sovcomflot for one icebreaking LNG ship out of six, which is worth slightly over US$317 million (333.8 billion won). In July, they also signed an order contract with Canadian Teekay for six ships and Japanese Molsa for three ships. Altogther, order contracts for 10 ships have been completed, leaving five ship orders left for Sovcomflot.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution