STX-Petrobras ponder new shipyard in Brazil

South Korea’s STX Corporation is reportedly mulling constructing a new shipyard in Brazil in co-operation with Brazil’s state-owned oil major Petrobras. South Korean shipbuilding rivals appear to be nervous about the news as they concentrate their energies on winning the drillship orders expected to be placed by Petrobras.

A local source reported that STX had decided to construct a new shipyard in Brazil in addition to STX Brazil Offshore SA and it is considering establishing a joint venture for operating the yard in the country together with Petrobras. According to the report, STX plans to build a shipyard on a site owned by Petrobras while STX securing more than 50% stake in the JV shipyard to have management right.

A spokesperson at STX Offshore & Shipbuilding is quoted as saying, “Petrobras is saying that it will order newbuildings only at local shipyards. We have decided to construct an additional shipyard in Brazil to get the inside track for winning the offshore unit orders.”

At present, STX Europe subsidiary STX Brazil Offshore SA is operating a shipyard located in Niteroi, Brazil but the yard has limited capacity even in building two to three midsize ships at once. Meanwhile, an STX official said, regarding the issue, nothing has been decided yet and the company is just seeking to win new orders through a variety of means.

The JV shipyard construction proposal is STX’s idea and no discussions on the matter are underway with Petrobras, he added. However, STX chairman Gang Duk-soo is said to be planning to visit Brazil in early July to decide on the potential Brazil project.