Why jobs are growing at Brazilian shipyards

Jobs at Brazilian shipyards have reached the highest number in seven years, according to data that shipbuilding association Sinaval shared with BNamericas. 

At end-September, a total of 32,425 people were working at shipyards, up 24% from end-December 2023. This year will be the third in a row in which there has been growth. 

But the latest employment figure is still lower than the peak in 2014, when 82,472 jobs were reported. The sharp decline in subsequent years was mostly caused by the plunge in oil prices combined with the Lava Jato anti-corruption probe in 2015, which affected federal oil giant Petrobras. 

Jobs at national shipyards 

Source: BNamericas based on Sinaval data

Sinaval’s press office said that the orders placed or announced by Petrobras and its subsidiary Transpetro are among the main reasons for the job growth.

These orders include several offshore support vessels, FPSOs and tankers. 

Shipyards are manufacturing port tugboats and river vessels, such as barges, rafts and pushers, stimulated by agribusiness, “which is booming,” Sinaval highlighted, adding that movement is the result of financing priorities defined by federal merchant marine fund FMM. 

The shipbuilding association said that Petrobras has signaled that it intends to ensure that local content rules are respected, in line with priorities by the administration of President Luiz Inácio Lula da Silva. 

In the past, according to Sinaval, there have been cases of fines having to be paid for non-compliance with the minimum local content percentages established in the contracts, which does not benefit the shipbuilding industry or the equipment and services industry. 

“We’re confident that we will have Petrobras' support and encouragement to reverse the trend, observed in previous governments, of directing orders entirely to Asian shipyards, with very low national participation,” Sinaval said. 

Petrobras' shipbuilding pipeline

FPSOs

Petrobras’ current business plan foresees the startup of the following FPSOs by 2028: 

– Almirante Tamandaré (225,000b/d), in 2024 or 2025

– Alexandre de Gusmão (180,000b/d) in 2025

– P-78 (180,000b/d) in 2025

– P-79 (180,000b/d) in 2026

– P-80 (225,000b/d) in 2026

– P-82 (225,000b/d) in 2027

– P-83 (225,000b/d) in 2027

– Albacora (120,000b/d) in 2027

– Barracuda/Caratinga (100,000b/d) in 2028

– Sergipe Deepwater (SEAP I and II) (120,000b/d) in 2028 

Petrobras has a tender underway for contracting the P-86 FPSO and the revitalization of the Marlim Sul/Leste and the Barracuda/Caratinga FPSO. 

New tenders for the Albacora and SEAP production units are expected to be launched soon. 

The P-86 is part of a group of seven FPSOs that Petrobras is considering installing between 2029 and 2032.

Other units that could be in this group are the 12th FPSO for Búzios and the Tupi field revitalization FPSO. 

Support vessels

Tenders underway include processes to charter 10 new oil spill recovery vessels (OSRV) and eight RSVs, which are vessels specialized in supporting underwater remotely operated vehicles (ROVs). 

Tankers 

Transpetro is currently carrying out an international tender to hire four handy class ships with deadweights ranging from 15,000t to 18,000t.

The process is part of the company’s fleet renewal and expansion program (TP 25), which foresees contracting of up to 25 ships at a cost of US$2.0-2.5bn.