Transpetro, the transport arm of Brazil's federal energy company Petrobras, has awarded the Atl?ntico Sul consortium a contract to build 10 Suezmax tankers for $120.9 million each.
Atl?ntico Sul is made up of Brazilian engineering companies Andrade Gutierrez, Camargo Corr?a, Queiroz Galv?o and shipyard Aker Promar. Atl?ntico Sul initially wanted $141 million per ship according to local press reports. The contracts are part of a $2.5 billion process to award contracts to build 26 ships and tankers. Other contracts went to Rio Naval, the Mau?/Jurong shipyard and the Itaja? shipyard.
Petrobras is prepared to move on to the next stage of its fleet renewal program, which includes 16 ships. In addition, the company is concluding studies to contract construction of one FPSO vessel and 10 platform supply vessels.
Transpetro said price negotiations for the 26-ship program cut $360 million from the initial price offers. The $2.48 billion for the whole program is 1% above the estimated price for building the ships abroad, according to CEO Sérgio Machado.
Part of the price reduction reflects negotiations with steel suppliers as well as special financing conditions. Shipbuilders will have access to financing from national development bank BNDES through a line guarantee by Brazil's merchant navy fund FMM. For Petrobras, the renewal program will reduce its $1.2 billion annual shipping costs since it owns only 40% of its 125-ship fleet.
For Brazil, the decision to build the ships in local shipyards will create 22,000 jobs over the next four years.
