Venezuela on a tanker building spree

Venezuela has reached a deal to build 36 large oil tankers in Brazil at a cost exceeding $3 billion. According to the local press, the governments of both countries reached a deal on the construction of the vessels, which will be built at various shipyards in Brazil. Also in the running for these contracts are Argentine and Spanish shipyards, which will build five and two tankers, respectively.

The tankers, varying in size from 30,000 to 250,000 DWT, will be assembled at five Brazilian shipyards, three located in Rio de Janeiro state, one in north eastern Pernambuco state and another in the southern state of Santa Catarina. The Rio de Janeiro-based shipyards Maua Jurong, Eisa and Keppel Fels; the Pernambuco state-based shipyard Atlantico Sul; and the Santa Catarina state-based shipyard Itajai would start delivering the vessels by 2009.

The construction project is to be carried out by a subsidiary of Brazil’s state-owned oil company Petrobras for Venezuelan state-run energy giant PDVSA and will create more than 10,000 new jobs and allow 40,000 other workers to remain employed. The operation would be financed in large part by Brazil’s National Development Bank and will revive its shipbuilding industry. In addition, Petrobras recently received offers by several Brazilian shipyards to build oil-industry support vessels.