A consortium of Samsung Heavy Industries and Technip is said to be close to signing a multi-billion dollar deal to build up to three floating liquefied natural gas production vessels (:FLNG or LNG-FPSO) for super oil major Shell.

Industry sources said the South Korean-French joint venture has emerged victorious from a long-running battle with its rivals Daewoo Shipbuilding & Marine Engineering, working with JGC, and Hyundai Heavy Industries, collaborating with Chiyoda, to win the new job.

Norwegian leading energy magazine Upstream cited a source as saying, "Shell started final negotiations in June and they [Samsung and Shell] have almost finalised everything."

A letter of intent is expected to be issued by the Anglo-Dutch oil major later this month, leading to contract award soon thereafter.

One source said a final meeting with all three South Korean contestants took place in May, after which Shell decided to pursue discussions solely with Samsung alliance.

The other two groups are believed to have had little contact with their potential client since that meeting, although sources said they remain in the running - officially at least. A source from one of the consortia acknowledged that Samsung is in the driving seat.

A Shell spokesperson said only that: "The tender process is ongoing" and declined to elaborate.

The terms and conditions of the contract - which includes front-end engineering and design and also engineering, procurement and construction work - have yet to be finalised but Upstream said that it will take the form of a frame agreement for three vessels on a 1+1+1 basis that would comprise one firm order with options for two more vessels.

This would suggest the first FLNG vessel will be ordered immediately, with Shell having the option to place two more orders with Samsung when further suitable candidate fields have been identified.

It was previously reported that Samsung's offer was based on the Mark III membrane-type containment system for the units' tanks but included an option for Shell to select the potentially more expensive SPB system.

One source suggested that once the Samsung award is finalised, it will trigger other oil majors, such as BG, Chevron, ExxonMobil, ConocoPhillips and Eni, to hasten their own FLNG(: or LNG-FPSO) newbuilding schemes.