Daewoo Shipbuilding & Marine Engineering Co. expects to boost offshore equipment contracts 34 percent this year and is in talks for its first order for a floating liquefied natural gas plant.

The world’s third-biggest shipbuilder may win the order early as next month, senior executive vice president Ryu Wan-soo said in an April 9 interview in Seoul, without elaboration. The shipyard said in February that it was in talks to build the plant for Petroliam Nasional Bhd.

Daewoo may also get a separate FLNG contract around year- end, which is not included in its full-year order target, Ryu said, as energy companies buy gas equipment to meet surging Asian energy use. Investment in LNG and oil-drilling may help Daewoo win $8.5 billion of contracts for offshore products this year, equal to 77 percent of its companywide order target.

“There is going to be quite a lot of demand for offshore equipment,” said Hur Sung-duck, an analyst at HI Investment & Securities Co. in Seoul. “There should be more orders coming from the Middle East in the second half.”

Daewoo has already won $2.2 billion worth of offshore orders this year. The tally includes a $2 billion deal for a floating oil production and storage unit from Tokyo-based Inpex Corp. That was the shipbuilder’s largest contract since 2007. Offshore deals totaled $6.34 billion last year.

The company also expects an order for two semi-submersible oil-rigs as early as next month, Ryu said, without naming the customer. The shipbuilder is in talks with Limassol, Cyprus- based Songa Offshore SE on a potential order for two semi- submersibles, it said March 28. 

(Bloomberg)