Daewoo Shipbuilding wins 1.2 tln won drill ship orders

Published : Mar 2, 2011 - 10:53 Updated : Mar 2, 2011 - 10:53

Daewoo Shipbuilding & Marine Engineering Co., South Korea's No. 2 shipbuilder, said Wednesday that it has won a 1.2 trillion won ($1.06 billion) order to build two drill ships.

Under the deal with Aker Drilling of Norway, Daewoo Shipbuilding will deliver the vessels, used to explore for oil and gas wells in deep waters, by 2013, the company said in a statement.

Daewoo Shipbuilding said it has an option to build two more rigs.

The vessels, 238 meters long and 42 meters wide, are capable of drilling in waters of 12,000 feet.

Daewoo Shipbuilding and Marine Engineering

Shares of Daewoo Shipbuilding were trading at 34,800 won on the Seoul bourse as of 9:50 a.m., up 0.87 percent.

The shipbuilder said a steady rise in demand for such specialized vessels is expected due in part to a steady rise in crude oil prices that has made deep sea exploration and development more profitable.

With the latest deal, Daewoo Shipbuilding has won orders valued at around $3.4 billion in the first two months of the year.

The shipbuilder is aiming to win $11 billion worth of orders this year. (Yonhap News)