South Korea-based shipbuilder Samsung Heavy Industries (SHI) is close to landing a US$2.5 billion order to build a floating LNG (FLNG) vessel abroad for Italian energy company ENI.
SHI has formed a consortium with France-based Technip and Japan-based JGC to lead the project. There have been much concerns that SHI will be able to sign a formal contract for the project due to the prolonged low oil prices, though the consortium has been selected as a preferred bidder.
However, ENI signed an agreement with British oil company BP to sell the entire volume of LNG produced by the Coral project for a period of over twenty years last month, and the board of ENI approved the investment plan for the project this month. Accordingly, SHI has got the green light for the conclusion of the deal by the end of this year.
As the ENI, which owns a 70 percent stake in the Coral project, has authorized the investment plan, other concessionaires, which own a 10 percent stake each such as Korea Gas Corp., Portugal’s Galp Energia and Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH), are also expected to hold the board meeting to approve the investment plan for the project.