MoU Signed for the Zvezda Shipbuilding Complex, Russia

November 13, 2013

Rosneft, Gazprombank, Sovcomflot and Korean shipbuilding company Daewoo Shipbuilding & Marine Engineering Co. signed, on November 13th 2013, a Memorandum of Understanding on key terms of cooperation to establish shipbuilding and industrial cluster in the southern part of Primorskiy Krai (Russian Far East).

The parties agreed to jointly complete the construction and launch a new shipyard – shipbuilding complex Zvezda – in 2016, to establish a Russian-Korean engineering center for shipbuilding and marine equipment for offshore projects. The companies also agreed key terms for technology exchange, localization of production and contracts placement.

The MoU was signed in the presence of Vladimir Putin, President of the Russian Federation, and Park Geun-hye, President of the Republic of Korea, as part of the official visit of the Russian President to the Republic of Korea.

Commenting on the Memorandum signed, Igor Sechin, Rosneft President and Chairman of the Management Board, said: “Rosneft has a large-scale program to develop offshore projects in Russia in challenging conditions in the Nothern and Far East seas. The company assumed obligations to localize in Russia shipbuilding and marine equipment production necessary for offshore projects implementation and is already working actively in this direction. Following the decision of the Russian President Vladimir Putin, Rosneft together with its partners Gazprombank and Sovcomflot is implementing a project to develop shipbuilding and industrial cluster at the Zvezda shipyard, that will have considerable multiplying effect on all related industries. We are glad the project will be implemented with the support of such an experienced technological partner as DSME, which owns cutting-edge technologies, as well as globally recognized reputation for shipbuilding, engineering and production of marine equipment for offshore projects. We are convinced the cluster will become a center for high-tech arctic shipbuilding in Russia.”

The Zvezda Shipbuilding Complex is a four stage construction project. The vessel construction will start when the first stage is complete. The product range of vessels will broaden with each additional stage put into operation. The Zvezda Shipbuilding Complex is expected to manufacture tankers with a displacement of up to 350 thousand tons, LNG carriers, ice class vessels, specialized vessels, and offshore platform units in 2020.