Shell’s giant FLNG facility, the Prelude FLNG, has arrived at the Prelude field in Western Australia after a 3,600 mile journey from Samsung shipyard in South Korea during which it was towed by three tugs. The largest floating offshore structure ever built is capable of extracting and liquefying gas at sea so it can be ex-ported direct from the facili-ty to buyers around the world. The facility will be moored to the seabed, in 250m water depths, via 16 pre-positioned mooring chains attached to its 93m high turret, and will remain on loca-tion for up to 25 years and peak [...]
Seadrill has been granted until September 12th to finalize its restructuring plan. However the company has warned that the final plan is likely to involve seeking Chapter 11 protection which will require substantial impairment or conversion of bonds as well as impairments and losses for other stakeholders including shipyards. The company has $14bn of debt and liabilities. Apart from investors the shipyards that are likely to take a big hit are DSME and Samsung in South Korea who have four UDW drillships under construction for Seadrill, China’s Dalian Shipyard (DSIC) with eight jackups under construction, Jurong shipyard in Singapore and [...]
At Samsung the recent fatal crane accident at Geoje yard has led to Total stating that two of its offshore development projects have been delayed. All work at the yard has been suspended while the investigation into the causes of the accident which killed 6 men is underway. This has delayed the shipping of modules to Norway for the Martin Linge project which in turn has delayed the installation of the modules from summer 2017 to summer 2018 as this can only be performed in the summer months. There has also been a delay, albeit less significant, to Total’s Nigerian [...]
Shell’s massive Prelude floating liquefied natural gas (FLNG) vessel is now mobilizing from Samsung shipyard in South Korea and is on tow to North West Australia to the Prelude gas field where it will be secured to pre-installed mooring chains before the commissioning process begins. The Prelude FLNG, 488m long, was constructed by a Technip/Samsung joint venture and is the largest off-shore facility ever constructed and built at a cost of $10 billion.
The new South Korean Finance Minister has stated that he will seek to reorganize the domestic shipbuilding industry through mergers and acquisitions and will push to have just two dominant shipyards—the “Big Two” system. This suggests that struggling DSME could be taken over by either Hyundai or Samsung by the end of 2018. All three are currently being restructured with DSME in the process of implementing its self rescue plan following a second rescue package was approved in April requiring further cost cuts and job losses.
Following the recent news that the delivery date for Stena’s Moss CS60 design mid water HE semi Stena MidMax had been delayed until mid 2018, Stena has now decided to exercise its rights to cancel the contract after the shipyard, Samsung in South Korea, failed to meet the original delivery date of Q1 2016 thus allowing Stena to cancel for convenience. Stena is now claiming a reimbursement of $215m representing monies already paid to Samsung, plus interest. Stena also announced it will pursue claims for compensations for costs incurred in relation to the project.
Arbitration proceedings for the dispute between Pacific Drilling and Samsung Heavy Industries is to take place in February 2018. This follows the cancellation of the construction contract for UDW drillship Pacific Zonda by Pacific in October 2015. Samsung initiated the arbitration proceedings in November 2015 after Pacific claimed a refund of all monies paid to the ship-yard up to the date it terminated the contract plus all associated costs.