Transpetro short-lists yards for tanker order

Transpetro, the shipping unit of Brazilian state oil company Petrobras, has selected four consortia to bid for a $1.9 billion order to build 42 oil tankers. The company will hold another meeting soon to decide on whether to expand the list of companies qualified for the order.

“They may eventually conclude that four qualified bidders is not enough for the whole lot,” said David Fischel, who represented Brazilian MPE company that is part of one of the chosen consortia. The group also includes South Korea’s Hyundai Heavy Industries, Sermetal and Eisa. Another group is made up of Brazilian companies Camargo Correia and Andrade Gutierrez as well as Japan’s Mitsui. The third authorized consortium comprises of the Rio Grande shipbuilding company and Japan’s Ishikawajima-Harima Heavy Industries while the fourth group comprises Norway’s Aker Yards and Brazil’s Queiroz Galvao.

In early August, Transpetro will ask the chosen groups to make their offers for the tanker contracts. The first phase of the 3 million DWT project calls for the construction of 22 vessels valued at a total of $1.1 billion and the second phase of 20 tankers is estimated to cost $800 million. All 42 tankers will be double-hulled with the first vessels scheduled for delivery in 2006.

The planned construction of Suezmax, Aframax, Panamax tankers as well as product and LPG vessels, is designed to expand the country’s export capacity and help to boost domestic production. Brazil expects to become a net oil exporter in 2006. Petrobras currently has 47 vessels and spends some $700 million annually chartering 63 tankers.

Under terms of the tender, at least 65% of the contracts will have to use domestic suppliers, in line with all major construction projects carried out by Petrobras.