China: Rongsheng Heavy Group Signs 1+1 Shuttle Tanker Construction Contract

China Rongsheng Heavy Industries Group Holdings Ltd, a large heavy industries group in China, has entered into an agreement with Shanghai NorthSea Shipping Co., Ltd. (“NSS”) in Shanghai on 29 September for a “1+1” shuttle tanker construction contract. This contract marks a major success of China Rongsheng Heavy Industries in developing the shipowner market in China following the contracts signed with Minsheng Financial Leasing and China National Offshore Oil Corporation (“CNOOC”).

Mr. Chen Qiang, Chief Executive Officer and Executive Director, said, “The key development strategy of China Rongsheng Heavy Industry is to provide relevant services to offshore energy industry, which includes exploitation, storage and transportation of oil and gas. Besides the shipbuilding business, our offshore engineering business is very promising due to China’s growing demand for offshore oil and gas. China Rongsheng Heavy Industries has accelerated the pace of development in the offshore engineering sector as seen in the 3,000-meter deepwater pipe-laying crane vessel built by us for CNOOC which was christened and launched in the first half of this year. The Group has also actively bid for projects and continuously devoted research and development into complex vessels such as drilling rigs and liquefied natural gas (LNG) carriers.”

A shuttle tanker is an offshore support vessel sailing through extraction platforms of the oil field, collecting crude oil from the platforms and transport to onshore oil refineries. Such vessels have the advantages of smaller size and flexibility. The 75,000 DWT shuttle tankers involved in the contract will be used in the energy projects of CNOOC.

Mr. Chen Qiang concluded, “The cooperation with NSS strongly demonstrates the trust of Chinese shipowners in China Rongsheng Heavy Industries, and contributes to forging a solid foundation to support the Group’s future development. Moving forward, China Rongsheng Heavy Industries are more aggressively pursuing strategic cooperation in the offshore engineering sector while upgrading our design capability and construction standard.”

Source: rshi, October 3, 2011

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Posted on October 3, 2011

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