Hyundai Heavy Industries Co. (HHI) said it won an order worth US$1.2 billion to build a floating oil production and storage unit for an unnamed “major oil company in Europe” as rising crude prices prompt energy companies to boost investments.
The unit will be delivered to the customer by May 2016, the Ulsan, South Korea-based company said in a recent regulatory filing. Bloomberg quoted Korean business newspaper Maeil as saying that the customer was BP.
According to Bloomberg, HHI said in December that it expected total orders in 2011 to reach $26.6 billion, the highest since 2008, as oil producing companies such as France’s Total and Brazil’s Petrobras increase investments to meet rising fuel demand.
Oil prices have been rising in recent months on the back of tensions in the Middle East and in particular due to the ongoing conflict in Libya which drew in a Western-led air bombardment campaign to assist anti-Gaddafi forces.
Brent crude jumped $2.26 to $116.19 pr barrel after air strikes on Libya began on Saturday with WTI prices rising by $2.12 to $103.19 per barrel.
