Shuttle Tanker Demand Soars as Brazil's Deepwater Oil Production Capacity Expands

Shuttle tankers are a specialized breed of vessels used to lift and transport oil from offshore fields, particularly in deepwater areas where subsea pipelines are not viable. The age profile of the existing fleet and surging developments in the Brazilian offshore market have spurred a wave of new investment in dedicated shuttle tankers.

These vessels command a substantial premium in capital cost due to their technical specification aimed at ensuring high operational and environmental performance, redundancy, and maintenance regime. They require exacting parameters for maneuvering and position-keeping when loading in open waters, which demands crew competence alongside equipment and system grade.

The Brazilian major Petrobras has continued to set production records with an emphasis on fields that depend upon regular shuttle tanker service. To meet the growing demand, market leader Knutsen NYK Offshore Tankers (KNOT) is investing heavily in newbuilds, while other players like AET and the Angelicoussis Group are also expanding their fleets.

The requirement for a new generation of vessels meeting charterer's ever-stricter environmental criteria has driven investment in dedicated tonnage. The current tranche of high-valued added contracts is yielding fresh business for South Korean yards well-experienced in the sector, as well as Chinese builders.