Teanspetro Tankers Henrique Dias and Dragao Do Mar (Image Via Petrobras)
Image courtesy PetrobrasBy Marta Nogueira (Reuters) – The transportation unit of Brazil’s state-controlled oil company Petrobras said on Thursday that it planned to cancel orders for 17 tankers and other vessels designed to upgrade the largest shipping fleet in the Americas.
“We decided to revoke the contracts for those ships,” Antonio Silvino, head of Transpetro, told reporters during a presentation at Rio Oil & Gas conference.
He said three other vessels, currently under construction at Petro Eisa 1 shipyard in Rio de Janeiro, could also be canceled because the contractor is going through financial difficulties.
The cancellations mark the unraveling of Brazil’s PROMEF project, a signature program of former Brazilian President Luiz Inacio Lula da Silva. His goal was to revive the country’s shipbuilding industry using the country’s now-busted oil and commodities boom and orders from Petrobras, as the oil company is known.
The cancellations represent more than a third of the 46 ships ordered by Transpetro under the program starting in 2003.
The ship contracts, though, became embroiled in the giant price-fixing, bribery and political kickback scandal at Petrobras.
Failure to deliver well-built, competitively priced vessels on time also weighed on the industry, which has been hit by mass layoffs, bankruptcies and contract cancellations.
Transpetro’s Silvino said the fact the company is cancelling the orders does not necessarily mean it will operate with a reduced fleet.
He said the company is evaluating options to increase the number of ships that will be offered on lease to Petrobras. Transpetro also plans to offer services for other companies in the sector, said Silvino.
From the total number of 46 vessels originally included in the PROMEF program, 17 were delivered, 17 have been canceled, three are under risk of being canceled and nine are under construction in other shipyards.
Additional reporting by Jeb Blount; Writing by Jeb Blount and Marcelo Teixeira; Editing by Jonathan Oatis
Seaspan Shipyards began construction today on what will become the most capable vessel in the Canadian Coast Guard’s fleet – a new heavy polar icebreaker, marking the country’s first such...
Shipping companies have all-but stopped buying dry bulk commodity carriers that were built in China as the industry waits to see if President Trump will press ahead with historic port charges on vessels constructed in the Asian country.
Taiwanese container shipping company Yang Ming Marine Transport Corporation has placed an order for three 8,000 TEU methanol dual-fuel-ready containerships with Shoei Kisen Kaisha as part of a recently revealed...
March 31, 2025
Total Views: 1128
Get The Industry’s Go-To News
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
— just like 109,107 professionals
Secure Your Spot
on the gCaptain Crew
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
— trusted by our 109,107 members
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.