Lula Signs Deal to Build 44 New Vessels in Brazil

President Luiz Inácio Lula da Silva signed a contract on Monday (24) in Rio Grande do Sul under Petrobras and Transpetro’s Fleet Expansion Program. The initiative is part of the government’s broader effort to revitalize Brazil’s shipbuilding industry and reactivate Petrobras platforms that had been slated for decommissioning—this time in Rio Grande. Located 300 kilometers from Porto Alegre, the municipality is home to Brazil’s fourth-busiest port terminal and the Riograndense Refinery, the country’s first, inaugurated in 1937 as Refinaria Ipiranga.

The federal government aims to expand the country’s fleet of oil tankers and boost the domestic shipbuilding sector, starting with the construction of four Handy-class tankers—medium-sized vessels used to transport crude oil and refined products—each valued at $69.5 million.

In total, the program calls for the construction of 44 vessels. According to Petrobras, reducing reliance on chartered ships will provide greater flexibility and efficiency in the company’s logistics operations, particularly for the transportation of liquefied gases and other petroleum products.

Petrobras expects the initiative to generate 44,000 direct and indirect jobs starting in the program’s second half, with a total investment of R$ 23 billion.

The first phase includes the construction of four Handy-class tankers at an estimated cost of R$ 1.6 billion. These vessels will be used for transporting refined petroleum products.

Accompanying President Lula at the signing ceremony, Ports and Airports Minister Silvio Costa Filho underscored the shipbuilding industry’s significance and its positive impact on Brazil’s economy.

Fleet Expansion Milestone

This contract marks the first agreement signed by Transpetro under Petrobras’ Fleet Renewal and Expansion Program. Last week, in a ceremony in Angra dos Reis (Rio de Janeiro), the company launched a bidding process for the acquisition of eight gas carriers under the same initiative.

President Lula reaffirmed his commitment to strengthening Petrobras and the shipbuilding industry, emphasizing that revenue from the oil giant will help fund Brazil’s energy transition. While acknowledging his opposition to fossil fuels, he stressed that Petrobras’ financial resources will play a critical role in the shift toward cleaner energy.

“Why not leverage this technology to make Petrobras the world’s largest oil company?” he said.

Naval Industry Funding

Backed by resources from Brazil’s Merchant Marine Fund (FMM), the country’s shipbuilding sector closed last year with R$ 30.8 billion in approved funding for more than 430 new projects. These include vessel construction, repairs, dry-docking, modernization of existing units, shipyard expansion, and new port infrastructure developments.

Source: A Tribuna

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