$2 bln project involves construction of FPU and TLP off coast of Congo for offshore oil drilling by French oil company
These are the types of the offshore oil drilling and floating storage
facilities involved in the project that Hyundai Heavy Industries
clinched recently from Total Oil of France for $2 billion.
Hyundai Heavy Industrial Co. clinched a marine plant construction project worth $2 billion from Total Oil of France, one of the largest oil refiners and explorers in the world, the company announced on March 26.
Under the letter of agreement (LOA) signed between the two companies, Hyundai Heavy will build a floating production unit (FPU) and a semi-submerged tension leg platform (TLP) in the sea off the coast of the Congo in Africa for $2 billion, including $1.3 billion for the FPU and $700 million for the TLP, the company said.
The Korean company will be in charge of the installations for the entire project, from crude oil production to oil transportation. The company will take charge of design, procurement, production, and installation, in addition to test-runs on an EPC basis.
Through the TPL, oil and gas will be drilled and sent to the FPU to be refined and transported to terminals on land through pipelines. The company will complete the production of those installations by 2016 and install them at the Mohonord oil field 80 km southwest off the coast of the Congo.
A TLP is a semi-submerged crude oil drilling facility that connects platforms with a submerged structure floating in the sea via connected pipelines and is not affected by wind and high waves.
An FPU is able to refine 100,000 barrels of crude oil and 250 square meters of natural gas daily, and weighs 62,000 tons, is 250 meters long, 44 meters wide, and 18 meters tall.
Hyundai Heavy officials said the order from Total Oil will bring their project orders secured so far this year to $3.2 billion out of the $6 billion targeted for the year.
In the meantime, Vice Chairman John Rice of General Electric visited the Hyundai Heavy Industries’ Ulsan Complex, in Ulsan, South Gyeongsang Province, on March 27, accompanied by President Visal Leng of GE Oil and Gas Asia Pacific Region and President Kang Seong-wook of GE Korea °™ altogether six key GE executives °™ to discuss business cooperation with the Korean shipbuilding and engineering giant.
The visitors toured the shipyards and engine production plants of the Ulsan complex with keen attention to the Korean company’ s technologies and scale.
GE is engaged in eight different kinds of businesses ranging from oil and gas, aircraft production, power, water, and capital, in 160 countries around the world and employing over 300,000 workers. Revenue for GE in 2012 was $147 billion.
Hyundai Heavy has been in cooperative relations with the U.S. company in such areas as plants, electric equipment, and the manufacturing of engines. In 2009, Hyundai Heavy and GE jointly clinched a thermal power plant project worth $2.6 billion in Kuwait and Hyundai Heavy won the Excellent Long-term Customer Award from GE for four years in a row from 2009 to 2012.