Jurong?s Brazilian plans falter

Last year, Singapore-based Jurong Shipyard exited its joint venture in Maua Jurong, near Rio de Janeiro, and had signed a memorandum of understanding with WTorre Empreendimentos Imobili?rios to establish a yard in Rio Grande. However, a spokesperson from Jurong?s parent SembCorp Marine confirmed a report that negotiations on the planned joint venture with WTorre had failed to materialize.

In November, Jurong had said it was in advanced negotiations to form a joint venture yard covering 553,880 sq m with a 133m by 350m dry dock, the largest such newbuilding dock in Brazil. The yard would be capable of repairing and building semi-submersible rigs and floating production storage and offloading units.

The failure of the joint venture talks leaves Jurong without a presence in Brazil after it exited its 2001 joint venture with local partner Synergy Group. Last year, Maua Jurong came under investigation by Brazil?s Federal Accounts Tribunal over alleged overpricing in the soaring costs of the P-54 rig under construction at the yard. The hull was converted at Jurong Shipyard in Singapore while topside work in the Brazilian yard is at advanced stages.

The lack of a local presence in the Brazilian market will put Jurong at a disadvantage when it comes to bidding for projects. National oil company Petrobras has sought to have significant local content in contracts for offshore conversions and rig newbuildings.

It is understood that SembCorp Marine is looking for another yard venture in Brazil.

SembCorp Marine?s main rival Singapore shipyard group Keppel Offshore and Marine has a Brazilian yard Keppel FELS Brasil that specialises in offshore and rigbuilding work.