Brazil: OSX Inks USD 732 Mln Shipbuilding Contract

OSX Inks USD 732 Mln Shipbuilding Contract for 11 MR Tankers

OSX was hired by Kingfish do Brasil Navegação S/A to build 11 medium range tankers, with 45,000 DWT each, for transportation of oil and clear products. These vessels shall be chartered by Kingfish to Petrobras. The approximate total value of the shipbuilding contract between Kingfish and OSX is US$ 732 million with deliveries expected to take place until 2017, at the Açu Shipbuilding Unit, located in the north of the State of Rio de Janeiro.

Kingfish do Brasil is dedicated to providing logistics and marine transportation solutions to the Brazilian oil and gas market, by means of cabotage and long haul shipping. The company was founded by Kingfish Trading in 2009. The founders and shareholders of the company have over 25 years of experience, both in Brazil and internationally, in ship building and commodity transportation and trading, with a focus in oil, gas and petroleum derivatives.

Fourteen shipbuilding projects now comprise OSX’s task list at our Açu Shipbuilding Unit. Our team will build, in São João da Barra, 11 MR tankers for Kingfish, 1 PLSV for Sapura Seadrill and realize the integration of FPSOs OSX-4 and OSX-5 for OGX. At OSX, each one of us is proud to be able to dedicate our work to the development of oil production in Brazil.” stated Luiz Eduardo Guimarães Carneiro, CEO of OSX.

On February, 28th, OSX signed a contract with Sapura Navegação Marítima S/A for the construction of one PLSV (Pipe-Laying Support Vessel), for a total amount of approximately US$ 263 million. A PLSV is used for laying and installing flexible pipelines on the seabed.

OSX is a Brazilian publicly held company that provides equipment and services for the offshore oil and gas industry, being dedicated to supply the Brazilian industry’s growing demand for integrated solutions in three different segments: shipbuilding, E&P unit chartering and O&M services. Since July 2011, OSX is building the largest shipyard of the Americas, the Açu Shipbuilding Unit, in the Açu Superport Industrial Complex, in the São João da Barra Industrial District, with technology from its partner Hyundai Heavy Industries, the global leader in naval construction. In June 2011, the Açu Shipbuilding Unit project received financing priority from the Board of Directors of the Merchant Marine Fund, under contractual negotiation phase, and funding from a US$ 227.9 million bridge loan. Currently, OSX has an estimated order book of 48 offshore units, corresponding to approximately US$ 30 billion, US$ 4.8 billion of which are already confirmed, represented by seven oil and gas production platforms. The construction of these platforms is underway, at different engineering and execution stages. The FPSO OSX-1, the first offshore unit in OSX’s fleet, became operational in January 2012 and its private international financing, in the amount of US$ 420 million, was awarded the “Shipping Debt Deal of the Year – South America” award from Jane’s Transport Finance and the “Deal of the Year – 2010” award, in the “Project Finance” category of the Marine Money magazine. The private international financing of FPSO OSX-2, in the amount of US$ 850 million, was awarded the Oil & Gas Deal of the Year Americas, at the Project Finance International Awards in addition to being awarded the Latin America Upstream Deal of the Year at Euromoney’s 13th Annual Project Finance Americas Deal of the Year Awards. In March 2010, OSX raised R$ 2.5 billion in its IPO, the seventh largest primary IPO in the history of the BM&FBOVESPA. OSX is a part of the EBX Group, a corporate conglomerate founded and headed by Brazilian entrepreneur Eike Batista, who has a proven track record of successfully developing new ventures in the fields of natural resources and infrastructure, with the highest technology and sustainable standards.


Shipbuilding Tribune Staff, March 12, 2012; Image: osx