VARD to Design and Build Three SOVs for Dogger Bank Wind Farm
Norwegian shipbuilder VARD has secured a contract for the design and construction of three Service Operation Vessels (SOVs) to operate at the Dogger Bank Wind Farm in the North Sea...
With an estimated 250 extra OSV’s needed to support Brazil’s offshore oil and gas industry by 2020, Brazilian private equity fund P2 has promised $180 million to help fund the construction of a new shipyard in southern Brazil.
RIO DE JANEIRO–Brazilian private-equity fund P2, which is active in the infrastructure-development area, will put up $180 million in funding for its new Oceana shipbuilding subsidiary, P2 Brasil Vice President Guilherme Caixeta said Wednesday.
Oceana is starting to construct a new shipyard in Santa Catarina, southern Brazil, which will initially build four platform-supply vessels for Brazilian oil producer Petroleo Brasileiro SA (PBR, PETR3.BR, PETR4.BR), Mr. Caixeta told reporters at Brazil’s Offshore Finance Forum in Rio de Janeiro.
Total costs involved for the Oceana venture will be 670 million Brazilian reais ($330.8 million), including BRL220 million for the construction of the shipyard and BRL450 million for the construction of the four vessels, which will be financed by Brazil’s state-owned Merchant Marine Fund, Mr. Caixeta said. The first two vessels will be completed in 2015 or 2016, he said.
“Depending on capital needs, Oceana could hold an IPO in Brazil in five to seven years’ time,” Mr. Caixeta said.
P2 is a joint venture between Brazilian engineering group Grupo Promon and investment fund Patria, Mr. Caixeta said. Brazil will experience a shortfall in offshore support vessels to serve its expanding oil industry in future years, according to Mr. Caixeta.
“Today Brazil has 430 offshore oil-and-gas support vessels, but demand will grow to 680 vessels in 2020,” Mr. Caixeta said. “That means it will need 250 extra vessels, many of which will come from abroad as Brazilian shipyards are unable to produce so many.”
Brazilian shipyards are currently delivering around 20 new supply vessels a year, each of which is valued at around $50 million to $100 million, Mr. Caixeta said.
Join the 67,630 members that receive our newsletter.
Have a news tip? Let us know.