July 16, 1998 Despite problems with delays, Far East shipyards are still managing to secure high profile FPSO newbuilding and conversion contracts in the face of growing competition from western Europe.
Against the backdrop of complaints from Statoil over delays to its Asgard FPSO, Hitachi Zosen, continues to enjoy a fruitful relationship with Bluewater Offshore Production Systems.
Only last April, the Belgian-based contractor placed an order with Hitachi Zosen for an aframax vessel for use as a floating oil production, storage and offloading facility.
The vessel, due for delivery in the spring of 1999, will be built to the same specifications as the Bleo Holm Hitachi delivered to Bluewater in May last year.
The aframax vessel ordered by Bluewater will be built at Hitachi's Ariake Shipyard to be mounted with turrets and an oil-refining plant in Europe. It is the third vessel to be used for an FPSO ordered from Hitachi.
She is designed to be 241 m in length, 42 m in breadth, 14.9 m in draught and displace 121,790 tons, with a storage capacity of 119,000 cm.
Its Singapore affiliate, Hitachi Zosen Singapore is undertaking the conversion of a tanker to an FPSO for a joint venture between two Japanese firms and SBM.

Elsewhere, Hyundai Heavy Industries, the world's largest shipbuilder, has recently handed over an FPSO conversion to Petrobras, establishing itself as a builder of high value-added offshore facilities.
Ordered by the Brazilian state-owned oil company, the FPSO is the first of two such vessels ordered by Petrobras in April 1996 at a cost of $ 400 mm.
Destined for South American waters, the FPSO will be installed in the Marim field, 107 km from the Rio de Janeiro coastline.
Operating in waters 860 m deep, it will produce and store 150,000 barrels of crude oil and 5.17 mm cm of natural gas per day.

Two 320 m long, 300,000 dwt VLCCs are being converted by Hyundai employing a new construction method, from design, procurement, ship conversion and construction to testing.
For the first time in South Korea, Hyundai introduced an outsourcing method, to reduce costs through an international division of labour.
An Indian company carried out the detailed planning, while a Chinese shipbuilding company repaired and converted the vessel.
Fellow Hyundai Heavy Industries company Hyundai Mipo Dockyard has itself established a notable reference in the FPSO newbuilding sector, with the completion of the hull of the innovative Ramform design FPSO.
Since 1996, HMD, a ship repair and conversion specialist, has expanded its business into the building of specialised vessels including offshore projects such as FPSO/FSOs.
Back in February last year, Norway's Petroleum Geo-Services awarded the contract to HMD to construct the FPSO vessel for use in the Conoco operated Banff oil-field in the UK sector of the North Sea.
>From commencement of construction on March 5, to completion, including detailed development designs, HMD completed construction of the FPSO in 13 months.
The new FPSO measures 120 m long with a stern beam of 54 m. This unusual shape provides a large deck with load bearing capacity of up to 16,000 tonnes.
The unique features of this hull design allow the vessel to maintain herself bow to weather with minimal use of thruster power, which is augmented by an aerodynamic flare tower, which has a rudder to assist in trimming of the vessel's heading.
Light ship weight, excluding topside modules, is 10,000 tonnes and in her production mode is expected to produce 95,000 bpd with a storage capacity of 120,000 barrels.
At the time of the delivery last December, PGS site manager M C Jenkins at HMD commented: "The success of the Ramform Banff project depended on a very rapid construction phase for the vessel."
He added: "It is unlikely that Hyundai Mipo's achievement in producing such a complicated vessel in such a short time (actually ahead of schedule) could be matched by any other shipyard."

Daewoo Heavy Industries is intent on becoming a major world player in the market for specialised offshore industry projects, including FPSO units.
Last September, it marked a significant breakthrough in these aspirations when it was awarded the contract to construct the hull of the Terra Nova FPSO.
Daewoo was awarded the contract, worth an estimated C$ 200 mm, by the Terra Nova Alliance, a consortium of companies responsible for the design and construction of the floating production facility and subsea components necessary for the development of the Terra Nova field.
Beating off competition from two other shortlisted yards, thought to have been Astano in Sapin and the UK's Harland & Wolff, Daewoo will be responsible for fabrication of the ice-strengthened hull, which will be based on the Brown & Root PV 150 design.
Delivery of the hull, from Daewoo's Okpo facility, is scheduled for January 2000.
>From there it will be towed to the East Coast of Canada for the installation of five topside process modules, the internal turret mooring system and the flare stack.
Based on preliminary engineering and design the vessel is expected to be 291 m long, have a beam of 45.5 m and a loaded depth of 20 m. The FPSO will have a production capability of 125,000 bpd combined with a storage capacity for 960.000 barrels.
To date, Daewoo's experience in the offshore sector has seen it participate in the construction of a substructure for a semi-submersible production platform for delivery next September.
Daewoo is also involved in the refurbishment of the Molikpaq platform, due for redelivery next month. Work also encompasses the fabrication and installation of a 2,250 ton process module.
Fellow Koje-based South Korean shipbuilder Samsung Heavy Industries has itself enjoyed partial success in the FPSO sector.
In March the hull of the Laminaria, the world's largest FPDSO, was floated out 12 days a head of schedule.
The ship is due for delivery in August next year, and will operate on the Laminaria and Corallina fields off western Australia for Woodside Offshore Petroleum.