S. Korean companies eye prospective Brazilian offshore oil rig orders

SEOUL, April 20 (Yonhap) -- South Korean companies said Monday they are eying
possible orders for new offshore oil rigs and industrial plants from Brazil as
the South American country gears up to develop its oil and gas resources.
Companies present at the announcement of Brazil's Petrobas future development
plan in Seoul said local yards and industrial plant builders were well suited to
meet demand for new ships, refineries and other facilities used to develop and
process fossil fuel.
Petrobras, Brazil's state run oil company, said at the meeting hosted by Korea
Export Insurance Corp. (KEIC) that up to US$177.4 billion could be invested by
2013 to fuel oil and gas exploration in the Campos Basin, located northeast of
Rio de Janeiro in the Atlantic Ocean.
It said of the total, $104.6 billion will be used to enhance undersea exploration
and development capabilities, with $43.4 billion and $11.8 billion to be spent on
oil transportation and power generation facilities, respectively.
The company said up to 57 ships and offshore platforms would be needed, with an
estimated cost of $42 billion.
South Korea, with the largest shipyards in the world and the lion's share of
offshore oil rigs and drill ships, could win large orders that may help offset
the sharp drop in new orders that began last year.
Local companies could also be in a good position to win contracts to build
various industrial facilities, refineries and power generation plants in reions
where they enjoy international competitiveness.
KEIC said that if South Korean businesses win deals in Brazil, it would extend
export insurance coverage that could help in financing projects.
The Campos region covers 102,000 square meters and is estimated to hold up to 14
billion barrels of crude oil and gas, with Petrobras owning a 35 percent stake in
the basin.
yonngong@yna.co.kr
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