DSME AND NNPC FORM A NEW SHIPPING BUSINESS

Daewoo Shipbuilding & Marine Engineering Co.(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 10 million USD. The equity interests of DSME and NNPC in the shipping company will be 49% and 51% respectively. The joint venture will also have an offshore office which will be responsible for vessel operations and logistics.

DSME 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, 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.

The NIDAS joint venture is DSME? fourth overseas project, following DMHI, DSSC, and the Oman Drydock project. The NIDAS project fits in well with DSME? mid to long-term vision for the building of a global network.