In this blog post, we’ll explore the types and functions of offshore facilities, as well as the direction the South Korean shipbuilding and offshore industry should take moving forward.
Why is ocean development so important?
With ongoing geopolitical tensions in the Middle East, international oil prices have been highly volatile, and concerns about the stability of the crude oil supply chain are growing. With no energy source yet sufficiently available to completely replace oil in the short term, countries are continuing to invest in the development of new oil fields and the expansion of energy infrastructure to secure a stable energy supply.
While onshore oil fields and those in nearshore waters (generally at depths of approximately 200 meters or less) have been developed for a long time and are gradually seeing declining productivity, interest in deep-sea and offshore resources—which still hold significant development potential—is growing even more. However, since offshore oil field development takes place in environments far harsher than those on land, precise consideration must be given to the positional stability, righting capacity, and motion response characteristics of floating structures. Particularly in situations like the present, where the importance of energy security is growing due to geopolitical risks, the value of advanced offshore plant technologies capable of ensuring both safety and productivity is increasing even further.
What types of offshore facilities are there?
Offshore facilities is a general term for structures that perform various operations at sea. They are generally categorized into drilling facilities, which handle drilling operations; production and storage facilities, which handle production, storage, and offloading; and working vessels, which handle installation work or the construction of power generation facilities.
A drillship is a drilling vessel equipped with drilling equipment and various topside facilities mounted on its hull, capable of performing drilling operations while navigating the ocean. With its excellent mobility, it is a representative type of offshore drilling facility that is efficiently utilized when oil fields are dispersed across a wide area of the sea.
A semi-submersible rig is a type of offshore drilling facility designed to operate stably even in environments with rough waves and strong winds. The “maneuverability” referred to here does not simply mean speed of movement, but rather stability and attitude control capabilities in response to waves and wind. For example, a 100-meter sprinter on land may have a very high top speed but may have limitations when it comes to sudden changes in direction, whereas a soccer player, even with a somewhat lower top speed, excels at agile changes of direction and quick reactions. Similarly, a semi-submersible rig is designed to quickly adjust its posture even in rough sea conditions to maintain the facility’s stability and operational efficiency.
An FPSO (Floating Production Storage and Offloading) is a floating production and storage facility that processes, stores, and offloads crude oil produced at sea. Although its appearance resembles that of a ship, its purpose is not to navigate like a conventional vessel; rather, it remains moored in a specific sea area for extended periods to serve as a production facility. Since they are typically operated in a single location for 20 to 30 years or more, durability and stability are considered even more critical than for conventional merchant ships or oil tankers.
FLNG (Floating Liquefied Natural Gas) or LNG-FPSO is a floating facility capable of liquefying and storing natural gas produced at sea and then transferring it directly to LNG carriers. In the past, it was common to transport natural gas produced at sea via pipelines to onshore plants for liquefaction and storage; however, the recent expansion of floating LNG facilities—which perform liquefaction and storage directly at sea—has simplified the process and improved transportation efficiency.
Finally, a WTIV (Wind Turbine Installation Vessel) is a special-purpose vessel designed to transport and install offshore wind turbines. While onshore wind power is limited by available land and is heavily influenced by wind conditions, offshore wind power has the advantage of utilizing stronger and more stable winds. WTIVs serve as key equipment for installing these offshore wind turbines in precise locations, and demand for them is steadily increasing as the global offshore wind market expands.
Facilities such as FPSOs, FLNGs, and WTIVs have established themselves as key equipment for efficiently performing production, storage, and installation functions at sea, playing a vital role in both the energy and eco-friendly industries.
What direction should South Korea’s shipbuilding and offshore industry take?
Currently, South Korea and China are engaged in fierce competition in the global shipbuilding market. China is showing strength in shipbuilding volume based on its massive production capacity, while South Korea maintains world-class competitiveness in high-value-added vessel sectors such as LNG carriers, ultra-large container ships, and offshore plants. Moving forward, our shipbuilding industry needs to further strengthen its competitiveness in the field of technology-intensive, high-value-added offshore facilities—such as drillships, FPSOs, and FLNGs—rather than simply competing for orders for general merchant ships.
However, offshore facilities are constructed by mounting production equipment (topside) that performs specific functions onto the hull. While South Korea possesses world-class competitiveness in hull design and construction technology, it still relies on technology from overseas companies for some key production equipment and process technologies. To put it metaphorically, while the exterior is manufactured domestically, the internal core systems and some advanced equipment utilize overseas technology; consequently, the profits that can be generated in high-value-added sectors may be limited.
Therefore, it is crucial to further strengthen our in-house design and manufacturing capabilities for topsides to increase technological self-reliance. Securing these capabilities will enable us to move beyond simply building ships to leading entire projects and creating higher added value.
The importance of the offshore industry is expected to continue growing. As new industries—including not only energy development but also offshore wind power, carbon capture and storage (CCS), and offshore plants—are rapidly expanding, efforts are needed to secure world-class technological competitiveness across the shipbuilding and offshore industries as a whole. In particular, we expect students studying shipbuilding and offshore engineering to actively participate in research, development, and technological innovation, thereby helping Korea maintain its global competitiveness in the future offshore industry.
