Samsung Heavy wins $200 million deal for 2 crude oil carriers from North America

Seoul, Nov 7 (IANS) Samsung Heavy Industries said on Friday it has won an order worth 290.1 billion won ($199.4 million) to build two crude oil carriers for a client in North America.

Under the deal, the vessels will be sequentially delivered to the undisclosed client by January 2029, the company said. With the latest deal, Samsung Heavy has achieved 83 percent of its $5.8 billion annual order target for commercial ships, reports Yonhap news agency.

So far this year, Samsung Heavy has won contracts for 32 vessels, including seven liquefied natural gas (LNG) carriers, nine shuttle tankers and 11 crude oil carriers.

"Replacement demand for aging crude carriers is expected to continue," a company official said. "We will flexibly respond to changing market conditions through a cooperative production system with domestic and overseas shipyards."

Shipbuilding and energy sectors are expected to take up a big portion of South Korea's envisioned US$350 billion investment in the United States, which was agreed upon under a full trade deal between the two countries this week, amid the U.S. administration's push to rebuild the country's infrastructure for the industries.

South Korea and the U.S. have finalised an agreement on the details of Seoul's investment pledge that lowered U.S. tariffs on Korean products, practically concluding the two sides' months-long trade negotiations.

Under the agreed terms, the $350 billion investment will consist of $200 billion in cash installments and $150 billion allocated for shipbuilding cooperation, with an annual cap set at $20 billion.

The two countries will carry out the investment through an investment committee headed by U.S. Commerce Secretary Howard Lutnick, which will assess potential projects, and an umbrella special purpose company to execute the funds.

—IANS

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