February 4, 2010
Sembcorp Marine to build new Brazil shipyard
Singapore's Sembcorp Marine says that its wholly-owned subsidiary Jurong Shipyard (JSPL) will be building a new shipyard in Brazil "to cater directly to one of the fastest growing offshore oil and gas exploration and production markets in the world."
Sembcorp has acquired a freehold land area of 825,000 sq m (approximately 1.7 times larger than the land size of Jurong Shipyard's Tanjong Kling, Singapore, location) with 1.6 km of coastline in the State of Espirito Santo in Brazil that will be developed as a shipyard. Located in the Municipal of Aracruz, The site is about 80 km by road north of Vitoria, the capital of Espirito Santo State which is the second largest producer of oil in Brazil. The site is strategically located close to the offshore Espirito Santo Basin, which is one of the recently discovered giant pre-salt oil basins of Brazil, making it well-placed to support oil and gas activities.
The investment in the new shipyard is in line with Sembcorp Marine's global hub strategy and it reinforces the Group's commitment to forging a strategic foothold in Brazil to grow its offshore oil and gas businesses.
Mr Wong Weng Sun, President and CEO of Sembcorp Marine said "We have been a key player in Brazil's oil and gas construction industry since 1997, having delivered to-date a total of 11 units of oil and gas exploration, production and storage platforms for Brazilian oilfields. These platforms produce more than half of Petrobras' daily 2 million barrels of oil output, thus effectively making JSPL the main contractor to Petrobras. In addition to these production units, JSPL's turnkey siixth generation ultra-deepwater semisubmersible rigs, the West Taurus, Ocean Courage and West Orion, are chartered to Petrobras for deployment in Brazil and the Gulf of Mexico."
Mr. Wong said that the new shipyard "will be well-positioned to meet the needs of the vibrant market for drilling rigs construction, FPSO integration, topsides modules fabrication, ship and rig repairs" and "will also provide plentiful employment and training opportunities for the local workforce in Espirito Santo."
Engineering design for the new shipyard has commenced, with development and construction works to be undertaken in stages. On completion, the shipyard will be equipped with state-of-the-art facilities, including a dry dock, slipways, berthing quays and ancillary steel and piping facilities. It will be capable of drillship construction, building of semi-submersible rigs, undertaking FPSO integration, fabrication of topside modules and PSV construction, in addition to the traditional activities of drilling rig repairs, ship repairs and modification works