Hyundai Heavy Industries and Samsung Heavy Industries of South Korea clashed in a bid to win $2bn worth of Nigeria's Egina FPSO newbuilding order.
Egina FPSO is ultra-large offshore plant, with over 2m-barrel of fuel capacity. The Egina oil field  is located 150km off the coast of Nigeria, operated by Total. The French oil major, which has 24% stake in Egina, plans to sign the final newbuilding contract by the end of 2011, to begin production from 2015.
Triangular competition is under way with Hyundai, Samsung and China's Dalian Shipbuilding Industry Company (DSIC) in a consortium with China Offshore Oil Engineering Corporation (COOEC) and Technip.    
Even though DSIC is less likely to win the project with no previous experience in building ultra-large FPSO, China National Offshore Oil Corporation (CNOOC), mother company of COOEC, is influential in the bid, having 45% stake in Egina oil field.
On the other hand, Hyundai has the upper hand, having already built and delivered Usan FPSO of Nigerian offshore oil field with its own technology. Samsung also eyes this sector with penning small-and-medium size FPSOs this year.
Hyundai and Samsung have inked newbuilding orders amounting $16.7bn and $14.6bn each y-t-d. In case of Samsung winning this project, Samsung may be able to beat out Hyundai in annual new order for 2011.
However, Korea should be alert to Chinese consortium. Shipbuilding player said, "This is the first time to face China in an international FPSO newbuilding market. China's offshore plant newbuilding is also expected to grow."