Carnival time for Korean shipbuilders

Brazil’s state-owned oil company Petrobras recently met with South Korean shipbuilding-related delegate, comprising Kim Tae-ho, the governor of South Gyungsang province and officials from four shipbuilders in the province, in Rio de Janeiro and disclosed its massive drillship newbuilding plan.

Petrobras vice-president Duque said the company intends to officially announce next week its plan to order 28 drillships worth some $17bn. He said nine ships will be owned by Petrobras and the rest will be chartered from other owners.

He said the newbuildings need to be delivered between 2014 and 2017 and the principle of ?domestic construction’ would continue. But he added that the newbuilding project will be divided into three packages and the home production rate will be enhanced gradually.

Duque revealed that the first package of seven drillships will be ordered from one shipbuilder. Meanwhile, the four shipbuilders including Samsung, Daewoo, STX and Sungdong are expected to get into the inside track in the order-intake competition as they held a newbuilding consultation session with Petrobras on the day.

The Brazilian energy major is said to be in need of massive offshore plants worth up to $42.5bn and this could break the protracted orders drought in the global shipbuilding industry.

On the same day, Brazil’s iron ore supplier Vale expressed its intention to order 11 VLOC carriers worth around $1bn from Daewoo and STX of South Korea. Officials from the world’s largest iron ore exporter plan to visit South Korea within this month to finalize the newbuilding contracts.

Unlike Petrobras, Vale has, until recently, ordered newbuildings overseas including the four bulker order placed at South Korea’s Sungdong in August. But the iron order supplier said the 11 orders to be placed this time will be the last newbuilding project going for foreign shipyards and it will secure tonnage through charter contracts.