Index
Korea,
Where Success Knows No Limits
Offshore Plant
1. Industry Overview
4
2. Competitiveness & Prospects
8
3. Government Policies
13
4. Cost
15
5. Success Case
18
Industry Overview
Global Market Developments & Outlook
China has outrun Singapore
and is leading the global
jackup market.
Lower drillship orders due
to the fall in oil prices
3
Korea is leading the
global deep-sea drill
ship market.
Industry Overview
Domestic Market Developments & Outlook
Order backlogs by Korea and China
Korea
65.2
China
59
45
39.5
37.5
29.9
2008
53.6
47.7
37.2
29.4
2009
29
2010
32.2
2011
48.1
33
2012
2013
Sept.
2014
Sep,2014
Source: Clarkson
4
Industry Overview
Domestic Market Developments & Outlook
 By FPSO order backlog, Korea topped the list with 25 orders in 2014 and had an
almost dominant position in the mid- to large-size segment.
FPSO order backlogs
by major country
25
11
9
5
Korea
China
Brazil
Singapore
8
Other
other
Source: Clarkson
5
Industry Overview
Status of Foreign Direct Investment
Year
Nationality of
investor
Company
6
Segment
Industry Overview
Status of Foreign Direct Investment
Year
Nationality of
investor
Company
7
Segment
Competitiveness & Prospects
Industry Value Chain
Construction & fabrication
Key offshore plant market
segments include floating
semi-submersible, drillship, FPSO, LNG-FPSO and
LNG-FSRU.
8
Competitiveness & Prospects
Human Resource: Supply & Demand
Unit: People
Number employed
168,048
153,992
149,668
139,337
136,769
141,634
131,281
93,385
80,573
71,781
2004
2005
2006
2007
2008
2009
9
2010
2011
2012
2013
Competitiveness & Prospects
Increase in Supply of Skilled Labor
Unit: People
Change in skilled labor
114,167
In-house skilled labor
102,308
94,325
Subcontracted skilled labor
80139
49831
83,979
36314 35750 36524 37599
2005
90,008
55862
42040
2004
86,810
2006
2007
38,576 38,345
36,786
36,575 36,444 36,958
2008
2009
10
2010
2011
2012
2013
Note: Based on shipbuilding and offshore (excluding others)
Source: Korea Offshore & Shipbuilding Association
Competitiveness & Prospects
Korean Offshore Plant Industry & Infrastructure
Seoul
– Engineering
Daejeon
– Special research zone / basin
Ulsan
– Offshore plant construction / OSV
Busan
– Equipment / R&D center / HR development
South Gyeongsang Province
– Construction / testing & appraisal / OSV
11
Competitiveness & Prospects
Korean Offshore Plant Industry & Infrastructure
 The ocean engineering basin is scheduled for start-up in 2016 in the western part
of Busan. In the Galsa Bay Shipbuilding Industrial Park in Hadong, a demonstration
bed will be established to test the performance of deepwater energy production
facilities.
Ocean Engineering Basin in Busan
12
Government Policies
Efforts to Enhance Regional Offshore Plant
Research Facilities
Region
Offshore plant research facilities
Busan/Geoje
Hadong, South
Gyeongsang
Province
Mokpo/Gunsan
13
Government Policies
Government Policies & Related Regulations
1
2
3
14
Cost
Cost Breakdown
Cost breakdown of offshore plant industry
Depreciation
2%
Other
15%
Processing
outsourcing
18%
Materials
57%
Labor expenses
8%
15
Cost
Cost Breakdown
Key offshore plant materials: Cost breakdown
Device /
Steel
Engine
equipme
Pipe
nt
Chamber
Electrical
materials
parts
Outfitting
Other
Share
FPSO
4.4
0.5
33.7
11.2
0.5
2.0
1.7
2.9
56.9
Semi-Rig
4.2
3.8
15.5
3.2
0.9
3.8
2.4
2.0
35.8
Drillship
3.9
2.0
25.0
2.8
0.7
2.6
1.3
5.4
43.7
16
Cost
Profitability Relative to Cost
Unit: %
Korean offshore plant industry: Change in operating margin
9.3
8.4
8.4
5.5
4.3
3.6
2007
2008
2009
2010
17
2011
2012
3
2013
Success Case
GE’s Investment in Korean Industries
Revenue
Of the reported annual sales
of USD 1.8 billion, USD 1.44
billion comes from the
manufacturing segment
Products
Benefits
PSV, AHT/AHTS, CSV, ocean
energy production solutions,
shipbuilding design and
project operation
GE benefits from greater tax
relief, as its investment meets
government qualifications
18
Success Case
GE’s Investment in Korean Industries
GE Power Conversion Training Center
m2
19
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