Two S’pore firms vie for US$1b Brazil rig jobs
Two major Singapore engineering companies say they will bid for Brazilian oil platform contracts worth up to US$1bil despite new rules in the South American country that require high levels of domestic involvement.
Both Keppel Corporation Ltd and SembCorp Marine Ltd have stakes in Brazilian firms, helping them to meet the new local content rules for oil rig contracts in the country.
Brazilian President Luiz Inacio Lula da Silva had made the construction of the two oil platforms a campaign issue before his sweeping election win in October, saying the contracts would create jobs for the local industry.
SembCorp Marine said it was in talks to boost its stake in a Brazilian shipyard, Maua Jurong, following the new ruling. It bought its current 35% stake in 2001 for about US$8.75mil.
Keppel, for its part, owns 60% of Brazilian yard FELS Setal. – Reuters