STX targeting offshore market

South Korea’s STX Offshore & Shipbuilding is targeting about $2 billion in new orders for offshore vessels and plants this year, more than double the amount recorded last year, a senior executive said on Wednesday.

The shipbuilder aims to maintain or raise the target for offshore orders next year and expects to win orders from oil and gas projects in Brazil, Russia and Africa. Y.H. Chung, chief operating officer in charge of offshore business, said risks from the global economy and the still-nervous financial markets remained, but the offshore industry was likely to see a faster recovery than the commercial shipbuilding business in 2010, because of growing demand for energy development.

“We are getting many more inquiries compared with late last year or early this year … we have many deals to win in our yards in Brazil, China and South Korea.” Global oil majors and energy developers have been slow to push for major projects since the financial crisis, but Chung said the momentum would revive when financing conditions improve and oil prices reach $80 per barrel.

STX offers Panamax-sized drillships that are smaller than rival vessels but with the same drilling performance, which Chung expects to become popular next year among oil developers seeking to cut costs in the difficult market.

STX hopes to win future drillship orders from Brazil’s Petrobras, using its Brazil shipyard as a base, and is also working to secure orders for larger projects such as FPSO and liquefied natural gas (LNG) FPSO, Chung said.