With Shanghai at a standstill due to strict lockdowns, knock-on effects at shipyards are posing a growing risk of delays at important offshore projects.

Delivery schedules for several floating production, storage and offloading vessels under construction for key markets such as Brazil and Guyana could be affected.

Zero-tolerance Covid-19 lockdown rules in China’s financial and commercial hub have shut down yards, including those involved in engineering, procurement and construction of FPSOs.

Most workers and staff were ordered to work from home several weeks ago, and foreign contractors and resident engineers have been requested to stay indoors as long as lockdown restrictions remain, according to local industry officials.