The company said on January 5 that it received a 1.5-trillion-won order to build a floating production unit as part of the Mad Dog Phase 2 project in the Gulf of Mexico as commissioned by BP.
This is the first order for the nation’s shipbuilding industry for the new year and the first offshore plant deal after 18 months of no new order. During the whole year of 2016, no Korean shipyard has won a project in the wake of low oil prices.
The floating production unit Samsung Heavy Industries will build will be installed in the Mad Dog Phase 2 oil field 300 kilometers south of New Orleans. The oil field, discovered in 1998 and launched production in 2005, currently produces 80,000 barrels of oil and 60 million cubic feet of natural gas a day. After it was discovered in 2009 that the field had more oil and gas, BP started exploring the area in the second phase project whose estimated reserves reach 4 billion barrels.
The floating production platform the company will build is capable of producing 110,000 barrels of oil and 25 million cubic feet of gas a day, with its weight reaching 58,000 tons. The company will have to deliver the unit by August 2020.