Qatar’s state-owned oil and gas company signed a massive deal with South Korean shipbuilders Monday.
Qatar Petroleum plans to buy more than 100 ships worth $19 billion from Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries Holdings and Samsung Heavy Industries, Reuters reported. The ships are for carrying liquefied natural gas and will arrive through 2027. It is the largest ever single order of such ships, according to the outlet.
An analyst told Reuters that the three major South Korean companies would have faced difficulties staying afloat without the deal.
The purchase comes as global oil and energy producers such as Qatar are showing signs of recovery from the drop in prices caused in large part by the COVID-19 pandemic.
Global oil prices rebounded somewhat in May from historic lows in March. Prices have continued to rise this month as the Organization of the Petroleum Exporting Countries and Russia discuss further supply cuts. Easing of coronavirus-related restrictions is also increasing the price of oil.
Correction: June 4, 2020. An ealier version of this article mistakenly stated that Qatar was a member of OPEC. Qatar withdrew from OPEC in 2019.