UPDATE 1-Brazil searches Sembcorp Marine shipyard in graft probe

(Adds share price move)

SINGAPORE, July 3 (Reuters) - Singapore rig builder Sembcorp Marine said on Wednesday that authorities had executed a search warrant on its shipyard in Brazil as part of an ongoing graft investigation, sending its shares sharply lower.

Sembcorp Marine said the search was in relation to investigations against former consultant Guilherme Esteves de Jesus, adding that the former president of the shipyard Estaleiro Jurong Aracruz, Martin Cheah Kok Choon, was also under investigation.

It added the investigations were related to "Operation Car Wash" - a huge bribery case that has engulfed corporate and political worlds in Brazil for years.

Following the disclosure, Sembcorp Marine's shares opened 7% lower in Singapore on Wednesday. Shares in Sembcorp Marine's parent company, Sembcorp Industries, were down over 2%.

"The Company has co-operated fully with the Brazilian Federal Police and provided materials within the scope of the warrant," Sembcorp Marine said in a statement.

Rival Keppel Offshore & Marine, a unit of conglomerate Keppel Corp, agreed in late 2017 to pay a $422 million fine to resolve charges it bribed Brazilian officials. (Reporting by John Geddie; Editing by Michael Perry and Subhranshu Sahu)