Brazil shipyard says local-made rigs more costly
An extremely tight labor market is becoming a threat Brazil's leading shipyard Sete Brasil said government expectations about national content requirements for building the rigs, platforms and ships needed to developits massive offshore oil reserves were unrealistic.Company Chief Executive Joao Carlos Ferraz said requirements that 60 percent of the rigs his company is building for state oil company Petrobras be produced locally were out of line with international industry norms.He said drilling rigs built in Brazil were 15 percent more expensive than in rival shipbuilder South Korea. The statements underscored Brazil's challenge of educating and training its workforce to meet the needs of its booming economy.An extremely tight labor market is becoming a threat to the central bank's effort to rein in inflation, which has surpassed its upper target range of 6.5 percent annually.The government of former President Luiz Inacio Lula da Silva launched the program to revive the country's moribund shipbuilding industry. Petrobras, which holds a 10 percent stake in Sete Brasil, created the company with a group of banks and pension funds.During a forum on national content in Rio de Janeiro, Sete Brasil's Ferraz asked the government to reduce the requirements for companies operating in the shipbuilding industry ...
Read more