Brazil Petrobras Eyes Lease Of Ex-Ishibras Shipyard

Brazilian state-run energy giant Petrobras may rent the former Ishibras shipyard in Rio de Janeiro state, local business daily Valor Economic reported Monday. Petrobras would lease the shipyard at a cost of 4 million Brazilian reals ($ 2.34 million) per month for 20 years, the report said. Sources close to the negotiations told Valor that the contract was presented to Petrobras' board Thursday, but that a decision has not yet been made. Petrobras was not immediately available to comment on the report.
The site will need about $80 million in investments to bring it up to current shipyard standards. Petrobras would likely turn around and sublet the space out to a company that would build platforms or ships, rather than operate the shipyard, the report said.
Petrobras officials have said the company wants to stimulate the local oil- services industry to reduce costs, create local jobs and increase the amount of local content in oil platforms, drill rigs and supply vessels.
In May 2008, Petrobras announced plans to spend $5 billion to build 146 support vessels, which the company called the nation's largest single ship order.
Petrobras has turned to the long-dormant domestic ship building industry to fill the order, leading to a rebirth in the sector. Brazil was among the world's largest ship-producing countries in the 1980s before a global downturn in the industry saw the local docks shuttered.