May 2 (Bloomberg) -- Samsung Heavy Industries Co., the world's second-largest shipbuilder, led advances among shipyards in Seoul and Singapore on expectations rising crude prices will spur demand for offshore oil exploration and production units.

Samsung Heavy rose 8.1 percent, the biggest gain in three months, to close at 36,850 won in Seoul. Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest shipbuilder, climbed 3.7 percent to 45,250 won.

``With oil prices trading at record levels, companies are spending more to develop oil fields in deep waters and that is increasing the demand for offshore units,'' said Lee Jae Kyu, an analyst at Mirae Asset Securities Co. in Seoul.

Samsung Heavy, the world's largest maker of drill ships, yesterday won a $942 million order from Stena AB of Sweden to build a drill ship to be used in the Arctic Sea. The contract, the highest for the type of vessel, raised optimism of more orders for offshore units as economic growth in China and India increase demand for fuel.

Samsung Heavy has won $6 billion in orders this year, with drill ships accounting for more than half of the total. The company aims to win $15 billion of orders this year.

BG Group Plc, the U.K.'s third-largest oil company, said on April 30 more wells must be drilled to access reserves off the coast of Brazil.

BG is partnering with Petroleo Brasileiro SA, Brazil's state-controlled oil company, and Spain's Repsol YPF SA to explore the Carioca pre-salt offshore field. Haroldo Lima, the head of Brazil's national petroleum regulator, said on April 14 the deposit may hold 33 billion barrels of oil, making it the third-largest discovered.

Hyundai Heavy Industries Co., the world's largest shipbuilder, gained 1.3 percent to 362,500 won and its units Hyundai Mipo Dockyard Co. advanced 5.4 percent to 233,500 won.

Keppel Corp., the world's biggest maker of oil rigs, gained 1.9 percent to S$10.52 in Singapore. Nearest rival Sembcorp Marine Ltd. climbed 4.3 percent to S$3.86.

To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net.

Last Updated: May 2, 2008 05:24 EDT