News and Updates on HD Hyundai

KSOE Wins Myanmar Gas Field Offshore Plant Order

Korea Shipbuilding & Offshore Engineering (KSOE), Hyundai Heavy Industries (HHI) Group’s intermediate holding company controlling the Group’s shipbuilding units, won a USD 450 million worth contract to build a gas compression platform in Myanmar.
KSOE announced on December 8 that it signed a Letter of Intent (LOI) with POSCO International to construct a gas compression platform as part of Phase 3 of a gas field project in Myanmar.

With a total capacity of 27,000 tons, the new gas compression platform will be connected to the existing gas production platform to boost the pressure of the gas field, which is necessary to maintain the daily gas output of 500 million cubic feet.

The facility will be installed at the Shwe gas field in waters off Myanmar’s Bay of Bengal by the first half of 2024.

Once the Myanmar government grants a final approval on the development plan for Phase 3, KSOE will carry out all processes including design, procurement, production, transportation, installation, and test operation of the platform in an EPCIC (engineering, procurement, construction, installation, and commissioning) method.

Back in 2013, KSOE (the-then Hyundai Heavy Industries ) participated in Phase 1 of POSCO International’s Shwe gas field project and successfully built and delivered a gas production platform that is fully up and running now. This track record has helped earn deep trust from POSCO International, leading to the recently signed LOI for Phase 3.

"The project will serve as an opportunity to strengthen the energy value chain in POSCO Group, as well as the food business which is on our core agenda. Also, our collaboration with KSOE will enhance the synergy effect in the energy sector by securing the competitiveness of the Korean marine energy industry and forming an industrial ecosystem," said a source from POSCO International.

"It holds significance that this new offshore facility construction order was won amid a stagnant market hit hard by the COVID-19 pandemic," said an official of KSOE. "As offshore gas field projects are expected to pick up with global oil prices rebounding recently, we will proactively pursue new orders."

In October 2018, KSOE signed a USD 450 million deal with US oil developer LLOG Exploration to build a semi-submersible floating production system (FPS), scheduled to complete the construction in the first half of 2021.