Hyundai Heavy Industies Wins Pipeline Contract in Thailand

Hyundai Heavy Industries Co. has won a US$280-million contract for the Third Transmission Pipeline Project from PTT Public Company Ltd. of Thailand.

This pipeline project involves engineering, installation, and commissioning for laying 606km-long sub-sea pipelines to transport gas produced from the Malaysia-Thailand Joint Development Area Block B17 field southeast offshore of Thailand. This project is scheduled to be completed by July 2006.

Reaching 3,000km Mark of Sub-sea Pipe-laying Projects

This order is significant as HHI is able to achieve the 3,000km mark in accumulative length of its pipe-laying works and consolidates a leading position in the offshore pipe-laying business area.

With the successful conclusion of this contract, considering HHI's superior project management and performance shown to the client, HHI can have a chance to receive an order for an additional 135km pipe-laying project from PTT.

In order to further expand its capability for offshore pipeline and platform installation works, HHI purchased a special barge, 'HB-60,' for offshore pipeline projects from McDermott Holdings Ltd. of the US. With this purchase, HHI's pipe-laying construction fleet, equipped with a total of four (4) barges, provides a variety of construction services for the installation and commissioning of pipeline and platform projects.

HHI is now working on two major pipe-laying projects: a 504km Mumbai-Uran Trunk(MUT) sub-sea pipeline project for India's state-owned Oil and Natural Gas Corp.(ONGC) and a 471km Chunxiao pipeline project for a Chinese state-run oil company, CNOOC.

Target for Offshore Project for 2005

For 2005, HHI's Offshore & Engineering Division, accounting for 15% of HHI's whole business revenues, has targeted a new orders of US$1.65 billion for offshore fixed & floating units and pipeline projects. Last year, HHI won a total of US$1.6 billion orders including a US$350 million FPSO (Floating, Production, Storage & Offloading) unit from BP and a US$600 million MUT pipeline project from ONGC, India.