New Brazilian shipyard venture

Brazil’s EBX mining, energy and engineering conglomerate will invest up to $1 billion in a shipbuilding venture designed to meet needs of the nation’s burgeoning offshore oil drilling industry.

EBX has partnered with Hyundai Heavy Industries to sign a deal to construct the new shipyard to be built near Florianopolis, in the southern state of Santa Catarina, according to local media reports. The yard is understood to be primarily for the production of offshore and oil exploration vessels for EBX?s spin-off company OGX.

Due to commence vessel production in 2011, the yard is reported to be 1.6 million square metres in size and will be focussing on building major offshore vessels including drillships and FPSOs. It is expected to employ 4,000 workers.

Rio de Janeiro-based EBX is best known for its mining interests, but it also is involved in oil and gas exploration through OGX, which controls 22 exploration block off Brazil.

“Considering the investment plans announced by the major oil players in Brazil, including OGX, and that a relevant portion of the equipments to be used in the oil production shall be produced in Brazil, the local industry and shipyards will require material investments in the next few years to couple with this strong demand,” EBX says of the new yard.