South Korea’s major shipbuilders Hyundai Heavy Industries Co. and Samsung Heavy Industries received small relief in their liquidity woes by receiving payment and upon expectation for new orders.

Hyundai Heavy Industries on Sunday said it received 460 billion won ($404 million) in final payment for semisubmersible drilling ship Ocean Greatwhite after delivering it to U.S.-based Diamond Offshore. The order won for $630 million in 2013 had been in the contract term called heavy tail, in which 60 to 80 percent of dues are paid toward the end of construction.

“It is a huge relief that the delivery went through as planned as many offshore projects have been cancelled or delayed due to slump in oil prices and explorations,” a company official said. BP would be employing the facility for undersea drilling in southern Australia in October. The order is the last offshore facility Hyundai Heavy won.

Samsung Heavy Industries, another major shipyard in trouble due to dearth of new orders, is hopeful for landing more than $2.5 billion worth offshore project in fall, which would be its first new order in nearly a year.

The shipbuilder is said to be in final stage of talks with Italian state utility company ENI S.p.A. to build floating liquefied natural gas (FLNG) facility for gas exploration in Mozambique. The facilities would be worth $5.4 billion and Samsung Heavy reportedly is responsible for half of the venture. The order would likely come through in October. It would be pivotal to the company’s viability as it had promised creditors to secure $5.3 billion in new orders in return for debt relief program.

Samsung in consortium with France-based Technip and Japan-based JGC Corp., was selected as a preferred bidder late last year for the basic design. The company would be in charge of design and production of the hull. It is also working to draw orders worth 3 trillion won ($2.6 billion) from India-based Fox Group and Gas Authority of India Limited (GAIL).

By Park Yong-beom

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