Brazil's Transpetro suspends most EAS ship orders
Brazil's Transpetro, the transportation arm of state-run oil giant Petrobras, said on Sunday it suspended the purchase of 16 out of 22 oil ships ordered from EAS as part of its fleet-renewal program, Reuters reports.
Transpetro said in a statement that those 16 purchasing contracts will remain suspended until EAS meets certain requirements, like finding a partner with technical experience in shipbuilding. It is also demanding that the shipyard present a reliable timetable for the construction of the ships.
EAS has struggled to meet orders on schedule as Petrobras races to develop one of the world's largest oil reserves off the coast of Brazil. The government has had difficulty trying to attract foreign know-how to the local shipping industry.
"If at the end of this period, the EAS does not meet these requirements, contracts may be terminated, keeping the possibility of application of penalties under the contracts," Transpetro said.
The company added that it is not changing its order for five ships that EAS is building with the assistance of South Korea's Samsung Heavy Industries Co Ltd. Another tanker was already delivered to Transpetro.
An EAS representative could not immediately be reached on Sunday. The privately held EAS is owned by local engineering firms Camargo Correa and Queiroz Galvao.
In March, a local newspaper reported that Samsung, the world's No. 2 shipbuilder, sold its 6 percent stake to exit EAS.