Asia Shipyards Report 2020 - NORWEP

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Asia Shipyards Report 2020 - NORWEP
Asia Shipyards Report
                 2020
Asia Shipyards Report 2020 - NORWEP
Table of Contents

CHINA

DSIC                                                          7
COSCO                                                         8
CIMC Raffles                                                  9
SWS                                                           9
CMHI (Jiangsu)                                               10
ZPMC                                                         11
COOEC Qingdao                                                11
BOMESC                                                       12
Jutal                                                        12

KOREA

KSOE (Korea Shipbuilding & Offshore Engineering Co., Ltd.)   16
HHI (Hyundai Heavy Industries Co., Ltd.)                     16
HSHI (Hyundai Samho Heavy Industries Co., Ltd.)              16
HMD (Hyundai Mipo Dockyard)                                  16
DSME(Daewoo Shipbuilding & Marine Engineering Co., Ltd.)     17
SHI (Samsung Heavy Industries Co., Ltd.)                     17

SINGAPORE

Sembcorp Marine                                              23
Keppel Offshore & Marine Ltd                                 24

                                                                  2
Intro

        3
Chinese Shipyards Report
– Offshore Shipbuilding Segment

Executive Summary

This report by NORWEP China Advisor provides strategic insight into the offshore
shipbuilding industry of China. NORWEP members will get an introductive overview of the
China Shipbuilding Industry, with special focus on those shipbuilders which are related with
offshore shipbuilding.

The targeted readers of this report are NORWEP members who are focusing on China
offshore shipbuilding market OR who are planning to explore Chinese offshore shipbuilding
market in the near future. We hope that the information and our comments will give you a
better understanding of the market opportunities in China.

China shipyard market with Korea and Singapore are the top three export market for
Norwegian shipbuilding Suppliers. Today China is facing a big challenge for its shipbuilding
industry with over capacity. Chinese government encouraged Chinese shipyards to involve
high end offshore shipbuilding business with finance support.

Chinese government has a good strategy plan for “Chinese shipbuilding industry including
offshore shipbuilding” from 2009. China will catch Singapore and Korea for project
management, integrity technologies and offshore shipbuilding experiences in the next
decade.

China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Company (CSIC)
have finalized their re-merger, creating a new shipbuilding leviathan named China State
Shipbuilding Corporation Limited (CSSC). The firm is now the world's largest shipbuilder by
sales and backlog, with 20 percent of global market share, $110 billion in assets and more
than 300,000 employees up and down China's eastern seaboard. DISC and SWS are
subsidiary of CSSC.

The main Advantages in Chinese offshore shipbuilding are as follows,

1.   Project Execution Capability
2.   Competitive price
3.   Good delivery time
4.   Good enough infrastructure with large capacity
5.   Sound HSE with good references

                                                                                               4
The main Challenges in Chinese offshore shipbuilding are as follows,

1.   Weak basic design and project management team
2.   Weak marketing network for international business
3.   Required good site supervision team
4.   Languages – English barrier for communication

China Offshore shipbuilding industry shorten engineering design, high quality products and
experience services which are Norwegian offshore & marine industry leading areas.
Combined with Norwegian experiences, technologies, products & services, China offshore
shipbuilding will be more successful. If so, it will create more business opportunities for
Norwegian offshore & marine industry.

For FPSO market, there are total 17 FPSO projects of total 22 FPSO projects globally fabricated
in Chinese shipyards in 2020. NORWEP arranged China FPSO Market Update on June 11th,
2020 and NORWEP China FPSO seminar in Oct. 18th, 2020. You will find more information
about those two events in NORWEP website. Chinese offshore shipyards will be EPC or main
contractor of FPSO including Hull, Topside and integration & commissioning of total FPSO in
the near decade.

NORWEP members should work with Owner, EPC and Shipyard to be on the vendor list of
each project. It is a long road to walk from one vendor list company to be an Owner or
shipyard prefer supplier then to be a contractor. The good relationship with shipowner, EPC
contractor and shipyard are very important. The good agent in China should be considered.
The agent could help collect project information, get inquiry from shipyard or shipowner,
negotiate with shipyard and process the contract if so.

China Offshore Shipyards could supply finance solutions with Chinese commercial banks
together. Commonly, Norwegian Shipowners will get 80% finance of total contract value
from Chinese Banks if your vessels or rigs get service contract. But in the special case,
Chinese Banks even invest entity to make contract go ahead. So, it is better to let
professional broker involve in the early stage with potential Chinese Banks and Chinese
shipyards.

The project management team is the key for one project successful. Commonly, Norwegian
Shipowner will dispatch more advisors & experts to Chinese shipyard to do supervision job.
The Law Firm will join the efforts to review the final contract to avoid the conflicts in the
shipbuilding period. Those are good practical ways.

NORWEP strongly supported NORWEP members business in China offshore shipbuilding
market with Vidar Eiken, Director China and Chinese Shipyards, email:
vidar.eiken@norwep.com,Phone: +47 91591677 and Jian Guo, China Country Manager,
NORWEP, email: jian.guo@norwep.com, Phone:+86-1391 0398739.

                                                                                              5
Chinese Shipyards Map generally showed main shipyards locations around China coastline.

In China Government Shipbuilding middle & long-term development plan, there are main
three shipyard bases:

-   Bohai Bay Circle Area: Combined with DaLian, Shanhaiguan, Tianjin, Yantai, QingDao
    Haixiwan industry. DSIC, COSCO Dalian COOEC Qingdao, CIMC Raffles, Wuchang Qingdao
    are located at this area.

-   YangZi River mouth area: Combined with whole Shanghai, Nantong and Qidong
    shipbuilding industry, including Shanghai ChangXi Shipyard base, Yangzi River mouth
    area are the heart of shipping and shipbuilding in China. SWS, CMHI (Jiangsu) and COSCO
    Shanghai, Nantong & Qidong, ZPMC are located at this area.

-   Pearl River mouth area: Combined with GuangZhou shipbuilding industry, mainly build
    LongXue shipyard base. CSSC Huangpu Wenchong and Fujian Mawei are located in this
    area even not involved offshore shipbuilding too much.

From 2011, NORWEP arranged NORWEP members to visit and do workshops with China top
offshore shipyards yearly, including: DSIC, CIMC Raffles, CMHI, COSCO Dalian, Shanghai
WaiGaoQiao Shipyard (SWS), COSCO Nantong, COOEC Qingdao and ZPMC, etc. NORWEP
delegation met top management team, project management team and procurement team in

                                                                                          6
each shipyard with valued promotion. Such NORWEP China Offshore Shipyards Roadshow
will be continuously in 2021 after COVID-19 ended globally.

Chinese Main Offshore Shipyards List with Contact information

Dalian Shipbuilding Industry Co., Ltd. (DSIC)
Address: 1 Yanhai Street, Dalian, Liaoning Province, China
Website: http://www.dsic.cn/

Specialized in high spec Jack Up, Semi rig and FPSO including MODEC, Seadrill, CNOOC,
ConocoPhillips, Petrobras, Equinor etc.

Contact Information:

Mr. Jimmy Xu
Deputy Director, Sales & Marketing Division, DSIC
jimmy_xu@dsic.cn

Mr. Fei Wang
Deputy Chief Engineer,
wang_fei@dsic-design.cn

Mr. Roger Wang
Procurement Department, Dalian Shipbuilding Industry Offshore Co., Ltd
lei.wang@dsic-offshore.cn

For new vendors, DSIC will implement strictly control on the entry process via auditing of
their Financial status, Technical and Production Capability, Quality Management, HSE, Anti-
Corruption, etc., according to the < Makers Entry and Quit Procedure>. If the vendors pass
the auditing, DSIC will add this vendor to the Qualified/Approved Vendors List.

DSIC evaluates and grades the vender in the Vendor List every year according to the . DSIC require the vendors to update their qualification
documents such as Quality Management System and Certificates. For venders who may have
financial or delivery risk DSIC will perform special site inspection. The vendors will be graded
to A,B,C,D level according to the terms of the procedure.

If the vendors in the Qualified Vendors List have bad performance during contract execution,
financial or delivery risk, or other problems which may affect their contractual execution
capability, DSIC will lower their grade level, even quit the vendor from the Qualified Vendor
List.
                                                                                              7
Vendor Selection:

•   All venders selected for offshore projects shall be prequalified by yard and owner.

•   DSIC will select the suitable vendor from the Qualified Vendor List considering their
    quality, delivery time, price, service, risk and other factors.

•   DSIC will submit yard’s preferred vendors to owner for review and approval. If owner
    accept yard’s preferred vendors, then this item can be closed. If owner does not accept
    yard’s preferred vendors, owner can provide their preferred vendors to yard. Yard will
    further negotiating with owner’s preferred vendor.

•   If owner’s preferred vendors can achieve yard’s target price(yard preferred Vendor
    price), then yard will accept owner’s preferred vendors. After all efforts was made by
    yard and by owner, if there are price gap between yard’s preferred vendors and owner’s
    preferred vendors, both parties shall agree the price compensation for the Vendor
    selection.

COSCO SHIPPING HEAVY INDUSTRY CO.,LTD.
Address: No. 118, Yuanshen Road, Pudong New District, Shanghai, China, Postcode: 200120
Website: http://en.chi.coscoshipping.com/

Specialized in Cylinder FPSO and Driller, FPSO, semi, Jack Up and offshore wind installation
vessel for Sevan Marine, Petrobras, MODEC, BW Offshore, DEME, BP, TechnipFMC, etc.

Contact Information:

Mr. Wei Shi
General Manager of Commercial Headquarters
COSCO Shipyard Group Co.,Ltd
Tel: 86-21-5860 6885
Fax:86-21-5860 8213
E-mail: shiwei@cosco-shipyard.com

Mr. Qingpeng Lu
Manager, Offshore Commercial Dept.
COSCO Shipping (Qidong) Offshore Co., Ltd
E-mail: luqingpeng@cosco-shipyard.com

Mr. Bin Feng
Manager, Commercial Dept.
                                                                                               8
COSCO Shipping Heavy Industry Co. Ltd.
E-mail: fengbin@cosco-shipyard.com

CIMC Raffles
Address: No.33,Keji Road, Hi-Tech Industrial Development Zone, Yantai, China
Website: http://www.cimc-raffles.com

Specialized in NORSOK standard semi rig, Jack Up and FPSO for Petrobras, Yinson, COSL
Drilling Europe, BP etc.

Contact Information:

Mr.Cheng Ao
Norway Office Rep and Marketing Dept, Yantai CIMC Raffles Offshore Ltd
HP(cn): +86 186 6051 8679
HP(no): +47 91 24 95 30
E-mail: ao.cheng@cimc-raffles.com

Mr. Yunshui Chen,
Manager, Marketing Division, CIMC Raffles,
Mobile: +86 186 6666 2949
E-mail: Yunshui.chen@cimc-raffles.com

Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS)
Address: No. 3001, Zhouhai Rd, Pudong New Area, Shanghai Postcode:200137
Website: http://www.chinasws.com/

Specialized in Semi rig, Jack Up and FPSO for SBM Offshore, Petrobras, Exxonmobil,
ConocoPhillips, etc.

SWS’s Procurement Strategy

-   On Quality product
-   On schedule
-   On budget
-   International industrial technology and competitive price
-   Possible local fabrication capability
-   Local service capability to support shipyard to carry out the MC & C

                                                                                        9
SWS’s procurement procedure

Contact Information:

Ms. Liu Hongxia
Procurement Dept.
Email: liuhx@chinasws.com

Mr. Haijun Hu
Manager, Marketing Division, SWS
E-mail: huhj@chinasws.com

China Merchants Heavy Industry (Jiangsu) Co., Ltd (CMHI)
Address: No.1, Xin'anjiang Road, Haimen District, Nantong, Jiangsu, P. R. China.
Website: www.cmindustry.com.hk

Specialized in high spec Jack Up, Heavy Lifting Vessel, Semi and FPSO for OOS, Seadrill,
Petrobras, MODEC, Jan De Nul, tec.

Contact Information:

Mr. Yuhui Leng
Marketing Manager
China Merchants Heavy Industry (Jiangsu) Co., Ltd
E-mail: lengyuhui@cmhk.com

                                                                                           10
ZPMC
Address: No. 3261 DongFang Road, Pudong New District, Shanghai, China
Website: http://www.zpmc.com

Specialized in Pipeling Laying vessel, Heavy Lifting Vessel and Offshore Wind Installation
Vessel, etc.

Contact Information:

Ms. Wang Wen
Offshore & Steel Structure Management Department
Sales, Marketing & Management
Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC)
Tel: +86 21 3119 2635
Mobile:+86 15251611187
E-mail:wangwen1@zpmc.com

COOEC Qingdao
Address: No.492 Lianjiang Road, Qingdao West Coast, Shandong, China
Website: www.cooec.com.cn

Specialized in module, topside FPSO, Jacket, etc. for CNOOC, Petrobras, Shell, FLUOR, etc.

Contact Information:

Mr. Sam Shen,
Manager, Marketing Division
COOEC Qingdao
Email: shenxq@cooec.com.cn

                                                                                             11
BOMESC
Address: Company Address: No.14, the 4th Ave, TEDA, Tianjin, China. Zip Code: 300457
Tel: +86 22 6629 9900
Fax: +86 22 6629 9900, Ext. 6303

Fabrication Yard: No.53 Bohai 27th Road , Harbour Economic Area, Tianjin, China, Zip code:
300452
Tel: +86 22 25619922
Fax: +86 22 25619911

Website: www.bomesc.com

Specialized in module fabrication, topside of FPSO, Commissioning and Integration of FPSO
for SBM Offshore, Shell, Petrofac, Equinor, Yinson, MODEC, etc.

BOMESC are sourcing: HVAC accessories, gas detectors, VESDA, architecture material,
furniture, PCV, valves, Pump, gauge, transmitter, indicator, etc. BOMESC is looking forward
to serving more Norwegian clients’ FPSO projects and further develop cooperation with
Norwegian suppliers and service providers.

Contact Information:

Ms. Liu Huimin
Procurement Manager,
Mobile: +86 135 0208 3187
E-mail: liuhuimin@bomesc.com

Mr. Wei Dongchao
Business Director
Mobile: +86 138 2179 2201
Email:weidongchao@bomesc.com

Jutal Offshore Oil Services (Zhuhai) Co., Ltd.
Address: Equipment Manufacturing Zone, Gaolan Port Economic Zone, Zhuhai, China,
518050
Tel: +86- 756 628 1294

Penglai Jutal Offshore Engineering Heavy Industry Co., Ltd.
                                                                                          12
Address: No.5 Harbin Road, Economic Development Zone, PengLai, Shandong, China
Tel: +86-535 3455 100

Website: http://www.jutal.com/jutalwben/index.php

Specialized in module fabrication, topside of FPSO for TechnipFMC, SOFEC, Subsea7, NOV,
Total, etc.

Contact Information:

Mr. Steven Shi
Vice President, Marketing
E-mail: shifei@jutal.com

                                                                                          13
3.Ongoing FPSO projects in Chinese Offshore Shipyards in 2020
   Global FPSO Hull Projects in the Construction at Chinese Shipyards, 2020

  ID                      Project Name                             EPC             End User          Delivery Time          Yard
   1    Liza 4 FAST4WARD, MPF-3,FPSO Guyana                    SBM Offshore       ExxonMobil       Jan.,2022         SWS
   2    Liza-3,FAST4WARD, MPF-2, Prosperity, Guyana            SBM Offshore       ExxonMobil       August,2020       SWS
   3    Liza-2, FAST4WARD,MPF-1 (Liza Unity)Guyana             SBM Offshore       ExxonMobil       Dec.26,2019       SWS
   4    FAST4WARD, FPSO Brazil (Not Mero 3) (MPFB)             SBM Offshore        Petrobras       2022              CMHI
   5    Mero 2,FAST4WARD, FPSO Brazil (MPFA)                   SBM Offshore        Petrobras       Q1,2021           CMHI
   6    Marlim 1 FPSO Brazil MV33                                MODEC             Petrobras       2022.3            DSIC
   7    Mero 1 FPSO (MV31) Brazil                                MODEC             Petrobras       Dec.2020          DSIC
   8    Bacalhau Project (M350), Hull + LQ Quarter               MODEC           Equinor, Brazil   2023              DSIC
                                                                                Santos (former
   9    Barossa (M350)                                            MODEC         ConocoPhillips),   Not FID,Unclear   DSIC
                                                                                   Australia
  10    Buzios-5 (Almirante Barroso)MV32 FPSO                     MODEC            Petrobras       2021-2022         COSCO Dalian
  11    Sepia Carioca FPSO(MV30)Brazil                            MODEC            Petrobras       12.2021           COSCO Dalian
                                                                                                                     COSCO
  12    Amoca FPSO (MV34)GoM                                      MODEC           Eni Mexico       Jan.2021
                                                                                                                     Shanghai
  13    Marlim 2 FPSO Brazil                                      Yinson           Petrobras       2022              COSCO QiDong
  14    Tortue FPSO Senegal Mauritania                          TechnipFMC            BP           2022              COSCO Qidong
                                                                                                                     COSCO
  15    Karish FPSO Isreal 2018                                 TechnipFMC         Energean        April 3rd 2020
                                                                                                                     ZhouShan
  16    FPSO (P71) Brazil                                       CIMC Raffles       Petrobras       Dec.14, 2019      CIMC Raffles
                                                                                                                     COOEC
  17    Penguins FPSO UK                                          FLUOR              Shell         June, 2021
                                                                                                                     Qingdao
                                                                                                                     COOEC
  18    Liuhua 16-2 (HYSY119) FPSO China                          COOEC             CNOOC          May 15,2020
                                                                                                                     Qingdao
 Note: All Hull projects in red are new building FPSO. Others are conversion.

                                                                                                                                    14
Global FPSO Topside Modules in the Construction at Chinese Shipyards, 2020

ID                    Project Name                           EPC                  End User       Delivery Time        Yard
 1   Mero 1 (Libra) MV31                                MODEC                Petrobras         Dec.,2020         DSIC
 2   Marlim 1, MV33                                     MODEC                Petrobras         March, 2022       DSIC
 3   Buzios 5, MV32                                     MODEC                Petrobras         Jan. 2021         COSCO Dalian
 4   Sepia MV30                                         MODEC                Petrobras         May 30th, 2020    BOMESC
 5   Amoca FPSO (MV34)GoM 2018                          MODEC                Eni               July, 2020        BOMESC
                                                                                                                 BOMESC 40%,
6    Bacalhau                                           MODEC                Equinor, Brazil   2023
                                                                                                                 LP Modules
7    Mero 2,                                            SBM Offshore         Petrobras         Q1,2021           CMHI+BOMESC
8    Tortue FPSO Senegal Mauritania                     TechnipFMC           BP                2022              COSCO Qidong

9    Marlim 2 FPSO Brazil Mainfold                      Yinson               Petrobras         July, 2021        CIMC Raffles

                                                        Aragon                                                   Jutal Offshore
     Marlim 2, 7 Modules, gas treatment, gas
10                                                      subcontract from     Petrobras         July, 2021        Oil Services
     compression, utilities and flare systems
                                                        Yinson                                                   (Zhuhai)Ltd.
11   P71,two Power Modules                                                   Petrobras         Sept,2020         CIMC Raffles
                                                                                                                 COOEC
12   Penguins                                           FLUOR                Shell             June, 2021
                                                                                                                 Qingdao
                                                                                                                 COOEC
13   Liuhua16-2 (HYSY119)                               COOEC                CNOOC             May 15th, 2020
                                                                                                                 Qingdao

                                                                                                                                  15
Korea Shipyard Report
Shipyard General Information

KSOE
(Korea Shipbuilding & Offshore Engineering Co., Ltd.) : Holding Company of HHI, HSHI, HMD and
DSME(Merge on progress)

Address: 75 Yulgok-ro, Jongno-gu, Seoul, 03058, South Korea
Website: www.ksoe.co.kr
Tel.: +82 1811 0114

HHI
(Hyundai Heavy Industries Co., Ltd.)

Address : 1000, Bangeojinsunhwan-doro, Dong-gu, Ulsan, 44032, South Korea
Website : www.hhi.co.kr
Tel. : +82 52 202 2114

HSHI
(Hyundai Samho Heavy Industries Co., Ltd.)

Address: 93, Daebul-ro, Samho-eup, Yeongam-gun, Jeollanam-do, 58462, South Korea
Website: www.hshi.co.kr
Tel.: +82 61 460 2114

HMD
(Hyundai Mipo Dockyard)

Address: 100, Bangeojinsunhwan-doro, Dong-gu, Ulsan, South Korea
Website: www.hmd.co.kr
Tel.: +82 52 250 3038

Merging with DSME by HHI Group

Hyundai Heavy Industries (HHI) Group has received unconditional approval for the
merger with Daewoo Shipbuilding & Marine Engineering (DSME) from the competition
authority of Kazakhstan.

This is the first approval granted by international competition authorities for this transaction.
HHI Group’s proposed merger with DSME is currently under review for approval from
Korea’s Fair-Trade Commission and other international competition authorities including
China, Japan, the EU and Singapore.

DSME
(Daewoo Shipbuilding & Marine Engineering Co., Ltd.)

Address: 3370, Geoje-daero, Geoje-si, Gyeongsangnam-do, 53302, South Korea
Website: www.dsme.co.kr
Tel. : +82 55 735 2114

SHI
(Samsung Heavy Industries Co., Ltd.)

Address: 23, Pangyo-ro, 227 beon-gil, Seungnam-si, Gyeonggi-do, 13486, South Korea
Website: www.samsung.com
Tel.: +82 31 5171 7000

Contact with contact details of shipyards:

Shipyards rejected to release the contact information and it is against "Personal Information
Protection Act" when the contact details are included in the report.
NORWEP's advisors will advise the proper contact details to partners according to the partners'
request.

Processes at the yard from bidding to final deliveries:

                                                                                 Proposed Supplier's
 Project phase             Yard position              Yard major activity
                                                                                 action related to AVL
 1) Concept selection      1) FEED contractor         * Budgetary Cost           * Try to register their
                                                      Estimation                 items on initial AVL
 2) Feasibility Study      2) Support to Company /    * Constructability Input   * Support FEED
                           FEED contractor            * Feasibility Study        contractor on technical /
 3) FEED                                                                         commercial information
                                                                                 * Promote their items to
                                                                                 Yard

                                                                                                  17
Bidding                  Pre-qualified EPC bidder   * Review ITT package          * Try to register their
                                                        (including Specification,     items on final AVL
                                                        Company’s vendor list)        * Support EPC bidder on
                                                        * Preparation EPC             technical / commercial
                                                        Proposal (Technical /         information
                                                        Commercial)                   * Propose cost effective
                                                        * AVL update, if needed       solution
                                                        * FEED verification, if
                                                        required
                                                        * Early Execution
                                                        Planning, if required (i.e.
                                                        Procurement
                                                        Engineering for LLI,
                                                        Critical Items)

    EPC Execution            EPC contractor             * Detailed Engineering        * Purchase Order
                                                        * Construction                compliance
                                                        Engineering                   * Audit, Evaluation
                                                        * Purchasing                  process by Company /
                                                        * Material Management         EPC contractor
                                                        * Construction
                                                        * Integration
                                                        * Commissioning
                                                        * Transportation
                                                        * Installation
                                                        * Offshore Hook-up &
                                                        Commissioning

Suppliers are recommended to promote their equipment and/or systems to Oil Companies, Rig
Owners and Engineering Companies occasionally even there are not specific project and to
support them during FEED stage.

Participation to "Offshore Shipyard Roadshow" will be one of the good solutions.
Suppliers are recommended to promote their equipment and/or systems to shipyards
occasionally directly or through their local agent.

Preferred engineering partners

-     HHI: Doris, Worley Parsons, Aker Solutions
-     DSME: KBR, Wood Group, Technip Energies, Aker Solutions, Worley Parsons, Saipem
-     SHI: Wood Group, Aker Solutions, Technip Energies, KBR, Worley Parsons, Doris

* Contact information are rejected to release by shipyards because of against "Personal
  Information Protection Act".

                                                                                                       18
Main clients

a) HHI: Total, Equinor, Murphy, Transocean, ROWAN, NOBLE, Diamond Offshore, Valaris,
Seadrill, Fred, Olsen, Shell, Total
b) DSME: Chevron, Equinor, Total, Exxon Mobil, BP, Transocean, Odfjell Drilling, Songa Offshore,
Allseas, Heerema
c) SHI: Shell, BP, Equinor, ENI, Chevron, Total, Petronas

* Contact information are rejected to release by shipyards because of against "Personal

Ongoing Projects

    Shipyard                   Project                      Contract Award               Sail-away
    HHI                        King's Quay                  Oct. 1, 2018                 June 30, 2021
    DSME                       Chevron Anchor FPU Hull      4Q 2019                      1Q 2022

                               BP Argos FPU(GoM)            1Q 2017                      1Q 2021
                               Eni Coral FLNG
                                                            2Q 2017                      4Q 2021
    SHI                        (Mozambique)
                               Reliance Ruby FPSO
                                                            2Q 2019                      2Q 2022
                               (India)

Prospects

-     HHI: SHWE Phase 3, Qatargas NFPS, Jansz-lo
-     DSME: Chevron Jansz-lo FCS, NOC Gallaf Phase 2 Batch 3 CPP, Petrobras P78 FPSO
-     SHI: FCS Project (Australia), FPSO Project (Brazil), FPSO Project (Nigeria), Fixed Platform Project
      (Nigeria)

Prequalification of makers list

This flowchart is based on DSME system.

-     HHI: Vendor TBE(Technical Bid Evaluation) and CBE(Commercial Bid Evaluation)
-     SHI: Having "Pre-screening Committee" among Sales, Proposal, and Risk Management Team

                                                                                                            19
HHI and SHI have almost similar prequalification system as DSME in detail.

    Vendors                                    Shipyard Procurement               Shipyard QM                        Remarks
        a) NDA : General Provisions                                                                                  a) To be executed by
                                                                                                                     shipyard bidding system
            a) Application Form
                                                                                                                     b) Document
                                                                                                                     Requirements
                                                                                                                        - Certification of
        Application for Registration                     b) Doc. check
                                                                                                                     Business Registration
                                                                                                                        - Pre-Qualification
                                                      Preliminary Review
                                                                                                                     Documents (incl. QA/QC
                                                                                                                     Credit Report)
       Preparation for Reapplication
                                                                                                                     c) To be notified within 1
                                                       c) 1st Evaluation
                                         Not                                                                         week
                                       Qualified                  Qualified                                             - Vendor is entitled to
                                                                                                                     tender to bid via bidding
                                                       Due Diligence
                                                                                                                     system as qualified 1st
                                                                                                                     Evaluation
              Audit Preparation                    Request for Quality Audit                                         d) HSE, Management,
                                                                                                                     Capacity
                                                        d) 2nd Evalution                     Quality Audit
                                                                                                                        (to be evaluated
                                                                                   Not
                                                                                                                     together with
           Quality Improvement                       Notification of Refusal     Qualified                           engineering and
                                                                                                         Qualified   production)
                                                                                                                     e) To be finalized within
                                                     Final Evaluation Sheet
                                                                                                                     1 month after the
                                                                                                                     application
                                                      Complience Check
                                                                                                                     f) To be reviewed and
                                                                                                                     updated once per year
                                                          e) Reporting

                                                       Internal Approval

         Transactions to be made                   Notification for Acceptance

                                                   f) Periodical Management

Future focus from each yard in the next 5-10 years

HHI
-     FPSO, Fixed Platform, Drillship and Offshore wind
-     Vessels, Propulsion: LNG dual fuel solution for LNGC & FSRU as proven & matured
      green technology.

                                                                                                                                    20
-   Ammonia & Hydrogen as a future green fuel in ten years or more.
-   Vessel, Energy saving and Environmental issues: Energy saving device as hull
    appendages, Air lubrication system, Wind rotor.

DSME
-   FPSO, Fixed Platform, Drilling rigs, Modules, Offshore wind
-   Vessels, Propulsion: No answer
-   Vessel, Energy saving and Environmental issues: No answer

SHI: No Answer

Qatar LNG Carrier Project
-   Three shipyards offered the slot for 40 ~ 45 vessels. (China total 16 vessels)
-   Type:
        o HHI and SHI: Mark III
        o DSME: NO96 (Mark III as option)
-   Cargo Capa.: Three shipyards offered 174K, 180K, 200K. SHI offered Qmax (260K)
-   additionally, as option.
-   Qatar will choose among these based on their economic evaluation. 174K has the most
-   potential.
-   Shipowner: not decided yet.
-   Delivery: 2023. 4Q ~ 2027. 4Q.
-   Actual delivery date will be decided step by step with shipowners.
-   Propulsion system: ME-GI (MAN MDT) and Sultzer 2-stroke Win GD (XDF)
-   Specification: Each shipyard submitted their own specification with deviation from Qatar
-   specification.
-   Vendor List: Each shipyard submitted their own vendor list with deviation from Qatar
-   vendor list.

Floating Offshore Wind Project in Korea

There is only one offshore wind project in Korea, which is Ulsan Floating Wind Project. This
project is being developing by five(5) private investment companies as below:

-   GIG (Green Investment Group) and TOTAL
           o Total capacity: 1.5 GW will be operated commercially before 2030.
           o Three LiDARs have installed.
           o This consortium had agreement with fishermen association
-   SK E&S and CIP (Copenhagen Infrastructure Partners)
           o Total capacity : 1.2 GW(400MW x 3) by 2027
           o Three LiDARs have installed.
           o This consortium had agreement with fishermen association
-   KNOC (Korea National Oil Company)/EWP (East West Power)/Equinor

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o   Total capacity: 800MW by 2026
          o   Two LiDARs have installed
          o   This consortium had agreement with fishermen association

Shipyards requirement
   -   KF Wiind/Aker Offshore Wind/Kumyang Electric/Offshore Wind/Principle Power
          o Total capacity : 800MW(400MW x 2) by 2028
          o Two LiDARs have installed and one more LiDAR will be installed soon.
          o This consortium had agreement with fishermen association
   -   CohensHexicon and Shell
          o One LiDARs have installed and two more LiDARs will be installed soon

To be commercially competitive, Norwegian suppliers are recommended to be more localized
in Korea and quick & active response/action for any issues during project execution.

Shipyards want to exchange information on the industry of NORWEP and Norwegian suppliers
and Korea Shipyards to identify area of bilateral priority and interest.

Please support the improvement of Norway network based on advanced experience and
emerging opportunities and challenges. Also, Korea Shipyards expect strategic collaborations
with NORWEP and Norwegian suppliers that drive mutual growth and prosperity.

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Sembcorp Marine
www.sembmarine.com

Sembcorp Marine provides innovative engineering solutions to the global offshore, marine and
energy industries, drawing upon more than 50 years of track record. Our customers include
major energy companies, drilling contractors, shipping companies as well as owners and
operators of floating production units. We focus on four key capabilities, namely: Rigs &
Floaters; Repairs & Upgrades; Offshore Platforms; and Specialised Shipbuilding.

We operate shipyards and other facilities strategically located in Singapore, Indonesia, the
United Kingdom, Norway and Brazil.

Overall: FY2019, Sembcorp Marine earned $2.88 billion in revenue with EBITDA of $104 million.

Main business lines:
   -   Rigs & Floaters
   -   Repairs & Upgrades
   -   Offshore Platforms
   -   Specialised Shipbuilding

Main business lines’ leaders:
   -   Wong Weng Sun, President & CEO

Main Sembcorp Marine Ltd office:
80 Tuas South Boulevard
Singapore 637051
Phone: +65 6265 1766

Projects:
   -   In May 2018, three fixed platform topsides, newly completed at Sembcorp Marine Admiralty
       Yard for French oil supermajor TOTAL, are destined for the High Pressure-High Temperature
       (HPHT) Culzean gas field in the UK North Sea.
   -   Sembcorp Marine won a design-and-build contract from Mitsui O.S.K. Lines(MOL) for a 12,000-
       cubic-metre(cbm) capacity LNG bunker vessel.
   -   In 2019, Completed world’s biggest and strongest semi-submersible crane vessel - Heerema
   -   Shell Vito FPU project for deepwater development in the US Gulf of Mexico.
   -   Johan Castberg (Skrugard) ,FPSO newbuild awarded by Norway/           Equinor.
   -   Energean Power, FPSO newbuild, awarded by Israel/Energean.
   -   FPSO conversion of VLCC Ariake, with Shapoorji Pallonji and Bumi Armada.
   -   Conversion of LNG Tanker Dwiputra into a 125,000cbm FSRU for Mitsui O.S.K. Lines and
       Karpower International B.V.
   -   Conversion of gas carrier LNG Flora into a 127,000cbm FSU for Gasfin Development S.A.
   -   Upgrading works on the 173,400cbm FSRU BW Magna for BW LNG Pte Ltd

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-   Fabrication of 15 jacket foundations under a contract with Jan De Nul N.V. for the Formosa 2
       Offshore Wind Farm.
   -   Aug 30, 2019 – Sembcorp Marine Rigs & Floaters Pte. Ltd. has entered into an exclusive Front-
       End Engineering and Design (FEED) contract with Siccar Point Energy E&P Ltd to deliver a
       floating production, storage and offloading (FPSO) design solution for the Cambo field in the UK
       Continental Shelf.

Other news:
   -   Achieved $1.49 billion in new orders, of which $530 million related to greener solutions,
       including gas and renewable energy projects.
   -   Sembcorp Marine Partners GE’s Grid Solutions To develop Electrical Transmission System For
       Solar Wind Farm.

People:
Mr Wong Weng Sun; President & CEO
Mr Wang Zijian; Head of Operations
Mr Alvin Gan ; Head of Repairs & Upgrades
Mr William Gu; Head of Rigs & Floaters
Mr Samuel Wong; Head of offshore Platforms
Mr Royce Lim; Head of Supply Chain
Mr. Adam Abdullah C.H. Koay; Head of Procurement; chinhock.koay@sembmarine.com

For business contacts;
Rigs & Floaters; +65 6265 1766, rigsandfloaters@sembmarine.com
Repairs & Upgrades; +65 7752 2222, repairsandupgrades@sembmarine.com
Offshore platforms; +65 6265 1766, offshoreplatforms@sembmarine.com
Specialised Shipping; +65 6265 1766, specialisedshipbuilding@sembmarine.com

Keppel Offshore & Marine Ltd
www.keppelom.com

Keppel Offshore & Marine is a global leader in offshore rig design, construction and repair, ship
repair and conversion, and specialised shipbuilding.

Main business lines:
   •   Offshore

The Offshore Division, helmed by Keppel FELS, is a leading designer, builder and repairer of
high-performance mobile offshore rigs. Our portfolio of proprietary designs and floating

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production solutions meets a broad spectrum of operating requirements, including deep waters
and harsh environments.

   •   Marine
The Marine Division is represented by Keppel Shipyard, the trusted industry name for the
repair, conversion and upgrading of a diverse range of vessels. We are the leader in the
conversion of Floating Production Storage and Offloading, Floating Storage and Offloading and
Floating Storage and Re-gasification Units.

   •   Specialised Shipbuilding
Specialised Shipbuilding Division led by Keppel Singmarine has a track record of some 400 new
buildings of diverse types and levels of sophistication. Our portfolio of customised vessels spans
Anchor Handling Tug/Supply vessels, multi-purpose Offshore Support Vessels and tugboats to
highly advanced solutions such as ice-capable vessels for a worldwide clientele.

Main business lines’ leaders:
   -   Chris Ong Leng Yeow, Chief Executive Officer

Main Keppel Offshore and Marine Office:
50 Gul Road
Singapore 629351
Phone: +65 6863 7200

Projects:
   -   Past projects included BW Adolo, FPSO Miamte MV34 and Ingenium ll.
   -   Keppel FELS and Diamond Offshore had entered an contract for the upgrade of the drilling
       semisubmersible rig Ocean Onyx.
   -   In 2019, awarded Liza Unity, FPSO newbuild for operator ExxonMobil.
   -   In 2020, awarded Prosperity , FPSO newbuild for operator ExxonMobil.
   -   Jan 2020, Keppel delivered its first rig of the year – named Heimdal for Borr Drilling from its
       order of 11 units.
   -   Keppel its wholly-owned subsidiaries in Singapore and Brazil, secured two contracts worth a
       combined value of about S$73 million from MODEC. The delivery is scheduled for Q4 2021 for
       the vessel, to be named FPSO Almirante Barroso MV32.
   -   Keppel Offshore & Marine has secured new contracts, combined worth roughly US$200 million
       that was a floating storage and regasification unit for FSRU Development, a joint venture
       between BW Gas and Invenergy Investment.
   -   The second contract Keppel AmFELS subsidiary construct a high-specification trailing suction
       hopper dredger for Manson Construction.

Other news:

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-   Keppel Corporation will partner liquefied natural gas (LNG) shipping company Golar LNG to
           develop a floating LNG facility (FLNG) facility to be located on the Mauritania and Senegal
           maritime border.
       -   The Energy Market Authority (EMA) Singapore and Keppel Offshore & Marine (Keppel O&M)
           have jointly awarded a research grant to pilot Singapore’s first floating Energy Storage
           System (ESS). This project was awarded to a consortium led by Envision Digital International
           Pte Ltd (Envision Digital). This is part of the $10 million partnership between EMA and
           Keppel O&M to develop innovative energy solutions in the marine sector announced earlier
           in April this year.

People:
Mr Chris Ong Leng Yeow; Chief Executive Officer
Mr Chor How Jat; Managing Director (Conversions & Repairs)
Mr Tan Leong Peng ; Managing Director (New Builds)
Mr Jay Singham; Director (Group Commercial & Sustainability)
Mr Melvyn Lee Hee Meng; General Manager (Gas Projects)

For business contacts;
KEPPEL OFFSHORE & MARINE LTD
Tel: +65 6863 7200 Fax: +65 6261 7719; www.keppelom.com

KEPPEL FELS LTD
Tel: +65 6863 7200 Fax: +65 6261 7719; www.keppelfels.com
Email: marketing@keppelfels.com

Contact Persons:
Tan Leong Peng, Executive Director
Yeong Yew Ming, Assistant General Manager, (Business Development, Offshore)

KEPPEL SHIPYARD LTD
Tel: +65 6861 4141 Fax: +65 6861 7767
Email: ks@keppelshipyard.com

Contact Persons:
Chor How Jat, Managing Director
Chin Sze Kiun, General Manager (Commercial – Repair)
Tey Wee Hong, General Manager (Commercial – Conversions)

KEPPEL SINGAMARINE PTE LTD
Tel: +65 6863 7200 Fax: +65 6261 7719
Email: singmarine@keppelsingmarine.com

Contact Persons:
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Andrea Gay Lee Bei Si, Assistant General Manager, (Business Development, Gas)
Tan Ser How, Assistant General Manager, (Marketing, Specialised Vessels)

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