Summary of Proposed Investment
Project Number
11415
Company Name
UP Offshore Apoio Marítimo Ltda.
Date SPI Disclosed
May 29, 2002
Country
Brazil
Industry
Infrastructure
Projected Board Date
Jun 30, 2002
Status
Completed
Sector
Water Transportation
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Jun 28, 2002
Signed : Dec 3, 2002
Invested : Jan 23, 2004
Project Description
The project consists of the acquisition of up to 10 new and second-hand offshore platform supply vessels (PSV) in order to provide supplies and services to oil and gas companies engaged in exploration and production activities (E&P) on the Brazilian Atlantic shelf. New PSVs will be built both in Brazil and overseas; these PSVs are most in demand for the deep and ultra-deep waters currently being explored off the coast of Brazil. Brazilian flagged vessels that are to be built in Brazil will be held in a Brazilian subsidiary of the project company, while vessels acquired internationally will be held through a Panamanian subsidiary and chartered to the Brazilian entity.
Liberalization of the Brazilian oil and gas industry in 1998 and increasing E&P activities off the Brazilian Atlantic coast create a large market for services to offshore oil and gas platforms. These services include transportation of personnel, equipment and various supplies as well as anchor handling, towing, and line handling, and are typically performed by specialized vessels at all stages of the E&P activities. By specialization, offshore supply vessels ("OSV") are categorized into (i) anchor handling, tow and supply vessels, (ii) line handling vessels, (iii) crew boats and (iv) PSVs. PSVs are involved in providing offshore drilling and production facilities with various supplies including equipment, pipes, lubricants, chemicals and drilling mud. They can also perform fire fighting as well as oil recovery operations in case of an oil spill at an offshore platform. The demand for PSVs operating at the Brazilian coast is estimated to double by 2005 from the present level of around 30 vessels. The Project will focus on the PSV segment of the market where there is a greater need for modern vessels and more potential for differentiation from competitors.
By investing in this project, IFC would be supporting Brazil’s efforts to beneficially exploit deep water natural resources important for economic growth, facilitating the provision of private infrastructure services and supporting private sector activity in the Brazilian shipping and shipbuilding sector.
Liberalization of the Brazilian oil and gas industry in 1998 and increasing E&P activities off the Brazilian Atlantic coast create a large market for services to offshore oil and gas platforms. These services include transportation of personnel, equipment and various supplies as well as anchor handling, towing, and line handling, and are typically performed by specialized vessels at all stages of the E&P activities. By specialization, offshore supply vessels ("OSV") are categorized into (i) anchor handling, tow and supply vessels, (ii) line handling vessels, (iii) crew boats and (iv) PSVs. PSVs are involved in providing offshore drilling and production facilities with various supplies including equipment, pipes, lubricants, chemicals and drilling mud. They can also perform fire fighting as well as oil recovery operations in case of an oil spill at an offshore platform. The demand for PSVs operating at the Brazilian coast is estimated to double by 2005 from the present level of around 30 vessels. The Project will focus on the PSV segment of the market where there is a greater need for modern vessels and more potential for differentiation from competitors.
By investing in this project, IFC would be supporting Brazil’s efforts to beneficially exploit deep water natural resources important for economic growth, facilitating the provision of private infrastructure services and supporting private sector activity in the Brazilian shipping and shipbuilding sector.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr Daniel Canales
Environmental Affairs
Ultrapetrol S.A.
Leandro N. Alem 986 11th floor
(C1001AAR) Buenos Aires, Argentina
Ph.: (54-11) 4875-0466
Fax: (54-11) 4875-0499
e-mail address: dcanales@ultrapetrol.com.ar
Environmental Affairs
Ultrapetrol S.A.
Leandro N. Alem 986 11th floor
(C1001AAR) Buenos Aires, Argentina
Ph.: (54-11) 4875-0466
Fax: (54-11) 4875-0499
e-mail address: dcanales@ultrapetrol.com.ar