BGC builds 2 ships for $700 million

National 1 minute, 39 seconds

BANDAR SERI BEGAWAN

BRUNEI GAS CARRIERS Sendirian Berhad (BGC) yesterday awarded Daewoo Shipbuilding and Marine Engineering Company Limited (DSME) of the Republic of Korea with two ship- building contracts worth over US$500 million ($709 million).

"The total costs, including production costs, per ship is more than US$250 million," said Ibrahim Mohd Yassin, acting managing director of BGC in an interview with The Brunei Times.

According to a report from Reuters, DSME was quoted to have won a US$493 million order for state-run gas carriers of Brunei adding that the contract has prepared an option for the Korean shipbuilding company to sell two ships to BGC.

The endorsement is for the construction of two LNG vessels whereby according to the acting managing director it took the local oil and gas company alongside relevant shareholders and agencies, a year of "very rigorous tendering exercise" to identify suitable consorts.

Out of six international shipyards from Japan and Korea DSME, the world's third-largest shipbuilder was found most fitting in securing the tender.

In a speech, Ibrahim highlighted that the two new vessels he described as 10 per cent larger than Shell Tanker "Abadi" and double the amplitude of Brunei Shell Tankers B-Class Fleet will be in service in 2011.

The significant move is also expected to deepen the existing economic ties between Brunei and Korea.

Ibrahim told The Brunei Times that currently only 0.7 per cent of local liquified natural gases is exported to Korea while the bulk of the rest is mainly purchased by Japan.

He said, "However, Korea is looking forward to getting more LNG from us, and depending on the price issue ... they are very keen in expanding the economic ties between Brunei and Korea."

According to a media report by Trading Markets, South Korea is renowned as the world's largest shipbuilding nation.

During the last few years, it attained record-breaking orders, especially with the increased demand for ships to booming economies such as China.

The Brunei Times