Samsung Heavy Wins 729 Billion Won Drill Ship Order

By Kyunghee Park

Aug. 18 (Bloomberg) -- Samsung Heavy Industries Co., the world's second-largest shipyard, received a U.S. order to build a drill ship worth 729 billion won ($699 million) as increasing demand for oil encourages exploration.

The vessel used for drilling in deep water will be delivered by Feb. 28, 2012, the Seoul-based company said in a regulatory filing today, without identifying the buyer.

Soaring oil prices and depleting reserves in shallow waters are prompting companies such as Exxon Mobil Corp. and Royal Dutch Shell Plc to spend a record $98.7 billion on exploration and production in 2008. Of the $11.4 billion orders Samsung Heavy has won this year, about half are for drill ships.


Samsung Heavy gained 0.1 percent to close at 36,200 won in Seoul trading. The stock has dropped 10 percent this year compared with a 17 percent decline in South Korea's Kospi index.

To contact the reporter on this story: Kyunghee Park in Sydney at kpark3@bloomberg.net