Sembcorp gets foothold in Brazil

Singapore-based Jurong Shipyard, a subsidiary of Sembcorp Marine, signed a strategic alliance agreement with Rio de Janeiro-based Mac Laren Shipyard to operate a shipyard in Brazil.

Under the agreement, which takes effect immediately and is valid for 5 years and mutually renewable on expiry, Jurong Shipyard will collaborate with Mac Laren for all future offshore oil and gas related projects to be undertaken in Brazil. Jurong will have management lead for all the projects and, in return, Mac Laren shall provide Jurong Shipyard with the exclusive use of its existing shipyard facilities located in Rio de Janeiro. The percentage participation of Mac Laren for all such projects shall be up to 49%.

Located in Niteroi in the state of Rio de Janeiro, Mac Laren is a mid-sized shipyard with a total land area of 408,000 m², comprising 128,000 m² of waterfront land and 280,000 m² of construction yard. Mac Laren is currently expanding its shipyard facilities with the construction of a new 150m x 130m x 13m drydock scheduled for completion in the 3rd quarter of 2009. The new drydock will be one of the two purpose-built drydocks in Brazil capable of drydocking semi-submersible rigs, including the largest production rigs.

Besides the drydock, the shipyard is also expanding its structural and piping workshop to

11,860 m² and increasing its quayside length to 240 metres to accommodate the berthing of VLCC sized FPSOs.

On the rationale for the strategic alliance with Mac Laren, Wong Weng Sun, president and coo of Sembcorp Marine said “The strategic alliance with Mac Laren will enable Jurong Shipyard to be a key player in Brazil?s oil and gas construction industry. Located in the State of Rio de Janeiro, the centre for oil and gas construction activities in Brazil, the shipyard is well-positioned to leverage on the abundance of experienced workforce, offshore related materials and equipment suppliers to meet the needs of the booming offshore market in Brazil.”