After acquiring the Philly Shipyard in the U.S. and establishing a Global Engineering Delivery Center in Noida, India, South Korea’s Hanwha Ocean is actively seeking to establish a new overseas shipbuilding base in Brazil. The company has not only formed partnerships with local Brazilian enterprises but is also reportedly planning to invest in building a shipyard there.
It is reported that Hanwha Ocean is discussing plans to set up an overseas shipbuilding base in Niterói, Rio de Janeiro, Brazil.
This move aims to aggressively pursue new ship orders in Brazil. Currently, Hanwha Ocean is participating in the bidding for the engineering, procurement, and construction (EPC) project of the FPSO “P-86” for Petrobras, Brazil’s state-owned oil company, which is intended for deepwater oilfield development. This marks the company’s first attempt at an FPSO project since its acquisition by Hanwha Group in 2023 and its rebranding from Daewoo Shipbuilding & Marine Engineering to Hanwha Ocean. It also represents the company’s re-entry into the global offshore equipment market after four years, following its last involvement in 2021 when it partnered with Saipem, a subsidiary of Italy’s ENI, to secure the EPC contract for Petrobras’ FPSO “P-79.”
In May of this year, the Brazilian government announced plans to invest 22 billion reais (approximately $3.9 billion) in 26 projects, including shipyard modernization and expansion, shipbuilding, and port infrastructure construction. Petrobras also unveiled plans to order 25 new vessels by 2035, including four remotely operated vehicle (ROV) support ships worth a total of $2.8 billion.
This indicates that the Brazilian government is leveraging large-scale maritime projects to revitalize its domestic shipbuilding industry.
In the late 1990s, after the discovery of offshore oilfields in Brazil, private enterprises were allowed to engage in oil exploration and refining, leading to the growth of the country’s shipbuilding sector. However, by the mid-2010s, plummeting raw material prices and the eruption of a massive corruption scandal caused the industry to decline, with many shipyards entering bankruptcy restructuring. As a result, the number of workers in Brazil’s shipbuilding industry dropped by 80% within six years.
Currently, Hanwha Ocean is working to build friendly relations with local Brazilian companies. On July 24, the company participated in the “21st Oil, Gas, Energy, and Shipbuilding Supplier Network (RdO Fornecedores)” event in Rio de Janeiro, expressing strong interest in Brazil’s FPSO, FLNG, and drillship projects.
However, despite industry speculation that Hanwha Ocean plans to build a shipyard in Brazil, the company has denied these claims. A Hanwha Ocean representative stated, “To meet the local content requirements (Local Content Program, LCP) for the FPSO project we are currently bidding on in Brazil, we are negotiating partnerships with local Brazilian companies. However, reports about constructing a new shipyard are untrue.”
Additionally, some in the Korean industry believe that Brazil’s shipbuilding development projects are not yet concrete, with many uncertainties on the ground, and further observation is needed to determine how they will progress.
A Korean shipbuilding industry insider commented, “As far as I know, the Brazilian government is trying to rebuild its shipbuilding industry and hopes for technical training and cooperation from South Korea. For Hanwha Ocean, which needs to secure Brazilian orders, cooperation is the only viable option. Unlike India, Brazil’s plant construction projects have not yet reached a concrete stage, making it a more uncertain market than the U.S. We will continue to monitor the situation and decide accordingly.”
Hanwha Ocean is reportedly accelerating its overseas expansion in offshore and other businesses to achieve diversification goals. To capture the Indian offshore equipment market, the company established the “Hanwha Ocean Global Engineering Delivery Center” in Noida, India, on July 31, which will handle detailed design work for offshore equipment such as FPSOs and FLNGs.
Previously, in the third quarter of last year, Hanwha Ocean established multiple overseas subsidiaries in the U.S., U.K., and Singapore to strengthen its sales capabilities in these regions’ offshore markets, accelerate business expansion, and increase its global market share. In November 2024, the company also opened a Global Project Center (GPC) in Amsterdam, Netherlands, its first offshore business hub in Europe, responsible for marine engineering and project management.
Industry experts predict that with rising demand for new FPSOs in South America (including Brazil and Guyana) and West Africa, the current FPSO market size of around $12 billion will expand to $18 billion by 2029, with an estimated 83 FPSOs to be ordered globally by 2030.
A Hanwha Ocean representative stated, “The company plans to effectively respond to the rapidly changing global market environment through a ‘multi-yard strategy’ that expands offshore equipment production bases. We can perform hull construction and integration domestically while producing topside modules at overseas bases, creating synergies to ensure cost competitiveness in the offshore business. Moving forward, we aim to expand into the entire value chain, including offshore equipment and offshore wind power, strengthen our global competitiveness, and accelerate our transformation into a global marine solutions provider.
