Marine Log

January 3, 2007

Daewoo in Nigerian shipping joint venture

Korea's Daewoo Shipbuilding and Marine Engineering (DSME) and the Nigerian National Petroleum Company (NNPC) have signed a Joint Venture Agreement to establish a world class shipping company. The shipping joint venture company will be called Nigeria Daewoo Shipping Ltd. (NIDAS).

The scope of NIDAS will be local and international transportation of merchant goods, crude oil and petroleum products. The initial capital of NIDAS will be US$10 million.

DSME's equity interest will be 49 percent and NNPC's will be 51 percent.

The joint venture will have an offshore office that will be responsible for vessel operations and logistics.

DSME says it has "clear mid and long term goals and expects to fully participate in the oil and gas activities including the energy sector through its involvement in NIDAS."

"Nigeria offers many business opportunities and a friendly investment environment to Korean companies," says a statement issued today, "therefore DSME will have ample opportunities to engage in new business development and diversify its investment portfolio in Nigeria. Such opportunities may include participation in the development of oil fields as well as the construction of FPSOs or semi-submersible drilling rigs."