Shipping Corporation of India to acquire 10 offshore vessels
State-owned Shipping Corporation of India (SCI), the country’s largest shipping firm by fleet size and revenues, is planning to acquire 10 offshore support vessels (OSVs). An internal study report said the company is mulling the acquisition of 10 anchor handling and tug supply (AHTS) vessels of various sizes. These would add to its offshore fleet of 10 OSVs, which it operates for Oil & Natural Gas Corporation (ONGC0).
Umesh C Grover, director (technical and offshore), SCI, said the proposed AHTS acquisitions would be under three projects, as the company is looking at buying vessels of three different sizes. “However, the specific numbers of vessels under each project is still being worked out,” he said.
SCI will appoint consultants to work out the finer details of the proposed acquisitions of these vessels.
Globally, AHTS of sizes ranging from 80 tonne to 200 tonne cost anywhere between $25 million and $85 million each. “All categories of AHTS have good prospects. So we would like to diversify,” Grover said.
The company has sought in-principle approvals from its board for the huge investments it has marked for the offshore sector. But it is yet to seek nods for these three projects. “That’s why it is difficult to provide an overall figure for investments at this stage,”
Grover said. As these projects are not in this year’s planned outlay, which is about Rs 2,300 crore, the board’s decision will depend on the consultants’ report and market perception.
SCI has already placed orders for four AHTS with Bharati Shipyard last year. The deliveries are expected in 2010-11.
AHTS are used to install and maintain oil platforms and command a day rate of $15,000 for small 80-tonne vessel to as much as $60,000 for bigger vessels. Despite the current volatility in crude oil prices, which usually impacts charter rates, analysts expect exploration & production (E&P) activities to stay profitable, keeping charter rates firm for the next few years.
“With E&P activities moving to deeper waters, the requirement for offshore support vessels is set to increase threefold over the requirement in shallow waters. This is an opportunity we would like to tap,” Grover had said earlier.
Umesh C Grover, director (technical and offshore), SCI, said the proposed AHTS acquisitions would be under three projects, as the company is looking at buying vessels of three different sizes. “However, the specific numbers of vessels under each project is still being worked out,” he said.
SCI will appoint consultants to work out the finer details of the proposed acquisitions of these vessels.
Globally, AHTS of sizes ranging from 80 tonne to 200 tonne cost anywhere between $25 million and $85 million each. “All categories of AHTS have good prospects. So we would like to diversify,” Grover said.
The company has sought in-principle approvals from its board for the huge investments it has marked for the offshore sector. But it is yet to seek nods for these three projects. “That’s why it is difficult to provide an overall figure for investments at this stage,”
Grover said. As these projects are not in this year’s planned outlay, which is about Rs 2,300 crore, the board’s decision will depend on the consultants’ report and market perception.
SCI has already placed orders for four AHTS with Bharati Shipyard last year. The deliveries are expected in 2010-11.
AHTS are used to install and maintain oil platforms and command a day rate of $15,000 for small 80-tonne vessel to as much as $60,000 for bigger vessels. Despite the current volatility in crude oil prices, which usually impacts charter rates, analysts expect exploration & production (E&P) activities to stay profitable, keeping charter rates firm for the next few years.
“With E&P activities moving to deeper waters, the requirement for offshore support vessels is set to increase threefold over the requirement in shallow waters. This is an opportunity we would like to tap,” Grover had said earlier.