Keppel buys stake in Brazil new shipyard

Brazilian construction group WTorre has confirmed talks with Singapore’s Keppel Corp over selling a stake in a new shipyard project. “We’re in advanced, but not conclusive, talks with Keppel,” a spokeswoman said.

WTorre’s oil and gas division has been building a large shipyard facility called ERG at Rio Grande in Rio Grande do Sul state in southern Brazil since 2006. Petrobras will be the main client and will convert tankers to FPSOs there, as well as build and repair rigs. WTorre could form a joint-venture operating company with Keppel, in which the Brazilian company would retain a minority stake. ERG is due for completion later this year.