Sinopacific signs contract for Congo project

Sinopacific Offshore and Engineering signed a subcontract with Hyundai Heavy Industries Co on Thursday to manufacture modules for the Moho Nord field project developed by Total, a French oil and gas company, in the Republic of Congo.

"It is the first time that such a subcontract for Total has been awarded to a Chinese company," said Zhu Shengxun, chief marketing officer of SOE.

SOE is required to manufacture two modules for the floating production unit designed for the Total project, said Zhu.

Most of raw materials and core design for the two modules will come from Total, the world's fourth-largest oil and gas company, and Hyundai, he said.

SOE, founded in 2006, is a privately owned company that provides solutions to the world's oil and gas industry. It has a production base of 855,000 square meters along the Yangtze River where it manufactures offshore cranes, modules, drilling systems and equipment.

Liang Xiaolei, chairman of SOE, said "the contract represents a major milestone for SOE as it will help the company reinforce its focus on the offshore market."

SOE began negotiations with Total in June 2011 and spent 32 months on talks with Total and preparations for the project as required by the French company.

"We have been trying to improve the quality of our products and services to meet international standards in the past two years," Liang said.

SOE, through the project, is developing its strategic alliance with the world's leading oil companies in the offshore field, he added.

The modules are scheduled for delivery in March 2015.