DSME ships two modules for TCO oil plant project

TCO oil plant project
Photo provided by Daewoo Shipbuilding & Marine Engineering Co.

South Korea’s Daewoo Shipbuilding & Marine Engineering Co. (DSME) announced Monday that it last Friday shipped two oil production plant modules for its largest order worth 3 trillion won ($2.8 billion) that it had received from Tengizchevroil LLP (TCO).

The shipbuilder won the order in 2014 to build 81 modules for a project to expand the Tengiz oil field in western Kazakhstan. It planned to construct 53 modules at its Okpo shipyard in Geoje, South Gyeongsang Province, and 28 at Shinhan Heavy Industries, its Ulsan-based subsidiary.

The two modules constructed at Shinhan Heavy will travel 19,000 kilometers for 90 days passing through the Suez Canal in Egypt, Volga-Don Canal in Russia and the Caspian Sea to arrive in the Tengiz oil field.

It is the largest offshore project the company has won that could keep dockyard occupied for at least three years amid slow orders in the offshore business.

DSME expects the project would help it strengthen its technology and retain skilled workers. The project would be also a great help to alleviate the financial difficulties of DSME that had already received the government’s bailout funds twice in the last few years.

Shares of DSME finished Tuesday 0.74 percent lower at 26,700 won.

The Original Posted By Woo Je-yoon and Choi Mira/Maeil Business News Korea