Seoul: Samsung Heavy Industries Co., a major South Korean shipbuilder, has announced securing a deal valued at 869.4 billion won (US$637 million) to construct an offshore production facility in Africa. The company revealed this development on Monday. The agreement is for building a floating liquefied natural gas (LNG) production facility in Mozambique, as part of an initial contract with a European shipping company operating in the region.
According to Yonhap News Agency, the final agreement for the project is yet to be signed, with a company spokesperson indicating that it will occur at a later date. Samsung Heavy highlighted the growing global focus on energy security, especially in the wake of the Russia-Ukraine conflict. This, coupled with changing energy policies under U.S. President Donald Trump, is likely to spur investments in offshore energy production facilities.
Samsung Heavy has set a goal to secure one to two offshore energy production facility orders each year in international markets. So far in 2023, the company has managed to secure orders worth $3.3 billion, representing 34 percent of its annual target of $9.8 billion. In comparison, the company achieved $7.3 billion in orders last year.
The shipbuilder's order backlog was reported to be $26.5 billion as of the end of June, which is sufficient to keep its shipyards operational for the next three years.