After more than a decade of economic crisis, burdened with huge debts, and undergoing court-supervised restructuring, Brazil’s Enseada shipyard is recovering.
As the primary beneficiary of Brazil’s Merchant Marine Fund (FMM), Enseada Shipyard has secured approval for investments totaling 8.4 billion reais (approximately US$1.575 billion). According to the fund’s managing agency, the Ministry of Ports and Airports, these funds will be allocated toward constructing new offshore support vessels and modernizing the shipyard’s facilities.
Located approximately 1,500 kilometers north of Rio de Janeiro, the Enseada Shipyard resumed shipbuilding operations following a restructuring after an eight-year hiatus. It now operates as a private port and logistics hub serving both the Brazilian Navy and the offshore oil industry. Looking ahead, the shipyard is poised to support the nation’s nascent offshore renewable energy sector.
In early October, Ports and Airports Minister Silvio Costa Filho and Brazilian President Lula jointly inspected the Enseada shipyard, strongly promoting shipbuilding investment projects in Oia state, where the shipyard is located.
Lula stated: “This inspection aims to revitalize Brazil’s shipbuilding industry, whose revitalization plan is closely aligned with the strategy of state-owned oil giant Petrobras. Focusing on the domestic shipbuilding sector is part of the president’s broader strategy to strengthen national industries and create jobs.”
Brazil is currently seeking to attract foreign partners to invest in and revitalize its shipbuilding industry. China is a key partner in this endeavor.
In July this year, Chinese and Brazilian shipbuilding enterprises signed a memorandum of understanding (MOU) at a shipbuilding industry strategy forum held in Rio de Janeiro, Brazil, to establish technical and commercial partnerships.
The MOU was signed by China’s major shipbuilding enterprises China Offshore Oil Engineering Co., Ltd. (COOEC), China State Shipbuilding Corporation (CSSC), China COSCO Shipping Corporation (COSCO), China International Marine Containers Group (CIMC), and Brazilian shipbuilders EBR, Rio Grande, Mauá, and Enseada.
During the meeting between representatives of Chinese and Brazilian shipbuilding companies, the two sides discussed common interests, explored possibilities for future cooperation, and the operating mechanisms of Brazil’s shipbuilding content policy, the Package of Incentives for Investments in National Industry (PDIC) and the FMM.
During the forum, Petrobras and Transpetro proposed huge new shipbuilding demand for OSVs, MR1 product tankers, liquefied natural gas (LNG) carriers and floating production storage and offloading vessels (FPSO) in the next five years.
Meanwhile, South Korean shipbuilder Hanwha Ocean proposed plans in July to build a new shipyard in the Niterói region of Rio de Janeiro state. The plan, unveiled at a meeting of the Rio de Janeiro State Federation of Industries, is expected to create 7,000 jobs. Hanwha Ocean is targeting contracts for FPSOs, FLNGs, and drilling ships.
The Key Role of FMM
Beyond attracting foreign investment, Brazil’s FMM is also playing a pivotal role in revitalizing the country’s struggling shipbuilding industry. In May this year, the Brazilian government pledged 22 billion reais (approximately US$5.509 billion) in financial support for 26 projects. These initiatives encompass shipyard modernization and expansion, port infrastructure development, and new shipbuilding ventures.
Senior executives at Enseada Shipyard stated: “The Brazil’s FMM is crucial for the construction and revitalization of Enseada Shipyard and other regional shipyards. These investments ensure project viability and job continuity.”
Since 2016, Enseada Shipyard has not built any offshore vessels. However, thanks to national support, the shipyard currently holds one of the largest order backlogs for offshore support vessels globally outside of China.
According to the Ministry of Ports and Airports, the shipyard has been approved for FMM funding to construct eight remotely operated vehicle support vessels (RSVs) and six oil spill recovery vessels (OSRVs) to meet Petrobras’ requirements.
However, according to Clarkson data, as of October, Enseada Shipyard had only received formal orders for six 5,000 DWT oil spill recovery vessels (OSRV). This series was ordered by CMM Offshore and delivered to Petrobras for operation under a 12-year charter worth US$1.5 billion. The new vessels feature battery hybrid propulsion, are designed by Kongsberg Maritime, and equipped with Wärtsilä engines. Deliveries are scheduled to commence in 2029, with ethanol fuel anticipated for future operational phases.
Beyond the offshore oil sector, Enseada Shipyard also announced in 2024 the construction of 80 mining barges for LHG Mining, each with a carrying capacity of 2,900 tons.
In addition to Enseada Shipyard, other Brazilian shipyards have also secured orders for offshore support vessels. For instance, Detroit Brasil received an order from Starnav for 10 platform supply vessels (PSVs) with a deadweight of 5,000 tons; EISA secured an order from Posidonia Shipping for two 4,500 DWT PSVs. Overall, Petrobras plans to tender contracts for the chartering and construction of 52 new offshore support vessels by 2028.