Brazil: EAS to Build Vessels for Transpetro with Samsung’s Help

With relation to the Contracts of Purchase and Sale of ships, entered into with the South Atlantic Shipyard (Estaleiro Atlântico Sul – EAS), in connection with the Fleet Modernization and Expansion Program (Promef), Transpetro reports that:

1) The EAS complied with the conditions contained in the Addendum which suspended the construction contracts of 4 of the 10 suezmax ships ordered to the shipyard and, consequently, will continue the construction of the vessels, which will be designed by Samsung. Therefore, the period of suspension of the contracts of the last four ships of the series will come to an end.

2) Regarding the 12 remaining ships, which integrate the global order of 22 ships made for the shipyard by Promef, the suspension of the contracts remains in negotiation.

The contracts were suspended in May, through an Addendum which determined that the EAS presents a technological partner, ship designs that meet the contractual specifications and a plan of action and dependable timeline for construction of the vessels.

[mappress]

Transpetro, November 22, 2012