Did Samsung Heavy Just Secure a $200 Million Deal for Crude Oil Carriers from North America?
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Synopsis
Samsung Heavy Industries has landed a significant contract for the construction of two crude oil carriers worth $199.4 million for a North American client. This deal is a crucial part of their strategy to meet a $5.8 billion annual order target in shipbuilding amidst growing global demand for new vessels.
Key Takeaways
- Samsung Heavy Industries has won a contract for $199.4 million.
- The vessels are to be delivered by January 2029.
- Samsung Heavy has achieved 83% of its annual order target.
- 32 contracts have been secured for various types of vessels this year.
- Significant investments are planned between South Korea and the U.S.
Seoul, Nov 7 (NationPress) Samsung Heavy Industries announced on Friday that it has secured a contract valued at 290.1 billion won (approximately $199.4 million) to construct two crude oil carriers for an undisclosed client in North America.
As part of this agreement, the vessels are scheduled for sequential delivery by January 2029. With this latest contract, Samsung Heavy has now achieved 83 percent of its $5.8 billion annual order goal for commercial shipbuilding, according to reports from Yonhap news agency.
In 2023, Samsung Heavy has successfully secured contracts for a total of 32 vessels, which includes seven liquefied natural gas (LNG) carriers, nine shuttle tankers, and eleven crude oil carriers.
A company representative noted, “Demand for replacing aging crude carriers is anticipated to persist.” They added, “We will adapt to evolving market conditions through a collaborative production network with both domestic and international shipyards.”
The shipbuilding and energy sectors are predicted to constitute a significant part of South Korea's planned $350 billion investment in the United States, a commitment made under a comprehensive trade agreement between the two nations this week. This initiative aligns with the U.S. administration's efforts to revamp the country's infrastructure for key industries.
South Korea and the U.S. have finalized the specifics of Seoul's investment commitment, which includes a reduction in U.S. tariffs on Korean goods, effectively concluding months of trade negotiations.
According to the agreed framework, the $350 billion investment will consist of $200 billion in cash installments and $150 billion earmarked for shipbuilding collaboration, with an annual limit of $20 billion.
The two nations will oversee this investment through an investment committee led by U.S. Commerce Secretary Howard Lutnick, which will evaluate potential projects, along with a dedicated special purpose company to manage the funds.
Point of View
I find Samsung Heavy Industries' recent contract a testament to South Korea's resilience in the shipbuilding sector. This achievement not only reflects the company's expertise and adaptability in a competitive market but also reinforces the strategic investments between South Korea and the U.S. that aim to bolster infrastructure and economic growth.
NationPress
07/11/2025
Frequently Asked Questions
What is the value of Samsung Heavy's recent contract?
The contract is valued at 290.1 billion won, which is approximately $199.4 million.
When will the vessels be delivered?
The vessels are scheduled for sequential delivery by January 2029.
How many vessels has Samsung Heavy secured contracts for this year?
Samsung Heavy has secured contracts for 32 vessels this year.
What sectors are expected to benefit from the U.S. investment?
The shipbuilding and energy sectors are expected to take a significant portion of the planned U.S. investment.
Who is heading the investment committee for the U.S. investment?
The investment committee is headed by U.S. Commerce Secretary Howard Lutnick.
