Korean rig builders team up to drive down costs

Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding and Marine Engineering all attended meeting

Hyundai, NEWS, Offshore, Exploration & Production

Hyundai Heavy Industries (HHI) and it and its domestic counterparts, Samsung Heavy Industries (SHI) and Daewoo Shipbuilding and Marine Engineering (DSME), recently held a meeting for an ‘Offshore Design Standardization JIP’ with American Bureau of Shipping (ABS) at Huston, Texas.

The meeting was also attended by ConocoPhilips, Technip and Musting.

The three Korean shipbuilders agreed to join forces to standardise materials, design, and procedures of offshore facilities that vary by project and client by the first half of 2016.

The meeting will be seen as an attempt to drive down construction and project costs.

“In the absence of common rules for equipment lists, design and work procedures, offshore facilities contractors and clients alike have been facing increases in the number of materials needed and material procurement costs, and project delays with the project-specific procedures,” said HHI in a statement.

The three Korean major shipbuilders that have also been working on standardization with DNV GL since May this year plan to expand further their standardization work with LR and BV, and to list the common rules on ISO.

Mr. Choi Kil-seon, chairman and CEO of HHI, said, “Standardisation of offshore design is an essential move to ease material cost increases and project delays, and to enhance our competitiveness in the global offshore market.

“We hope that the standardisation will help lower the entry barrier of domestic offshore facilities equipment manufacturers in the global market.”

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