ONGC hunts for new offshore ships

Oil and Natural Gas Corporation (ONGC), the country's biggest oil explorer, has initiated hectic negotiations with shipping companies to keep oil from its Bombay High oil fields flowing after the Directorate General of Shipping recalled its 27 offshore supply vessels for safety reasons.

The top management of ONGC, led by its Chairman R S Sharma, flew to Mumbai during the weekend to meet top Shipping Corporation of India (SCI) officials to procure offshore supply vessels (OSVs) urgently for deploying into the fields situated 160 km off the Mumbai coast in the high seas.

"ONGC has asked us to provide more vessels to support them. We are trying to rope in the services of chartering division of our company to source more vessels from the open market," said a senior SCI executive.

At present, SCI takes care of operations and management of 22 vessels of ONGC (16 OSVs and 6 specialised vessels). But the maintenance is outsourced to third parties.

ONGC would require over 30 vessels to maintain the uninterrupted oil exploration activities.

"ONGC is unlikely to get more than 15 vessels from the open market at this point of time," industry sources said.

The problems for ONGC, however, could flare up as Sical "� which has been accused by DG Shipping for plying a non-seaworthy vessel "� squarely blamed ONGC for the July 9 accident that killed five people on board.

In a communication to both ONGC and the DG Shipping, Sical said it took over 25 vessels for operation and maintenance on May 28 and it was not feasible to carry out interim SMC audits due to shortage of time. "It is also to be noted that there was increasing pressure to report the readiness of the taken-over ships to sail immediately after the handing over and taking over were completed as a minimal workforce level had to be maintained on the vessels in the fields to keep the offshore operations going," a communication from Sical Chief Operating Officer Captain Suresh Kumar informed DG Shipping.

The DG Shipping is planning to file a first information report with the Mumbai police against Sical for the July 9 accident.

In its communication to DG Shipping, Sical said that on many occasions, the leader of the HOTO (handing over and taking over) team was directed by none other than the executive director, logistics, ONGC, and the chief logistics officer of the Nhava supply base to complete the HOTO and offer the ship for deployment. "This is amply substantiated by the fact that the ill-fated Samudrika 10 was taken over on July 4 at P&V Anchorage, shifted to Nhava on July 5 and finally departed on July 6," Sical said in its July 11 reply to the DG Shipping. Samudrika 10 sank within three days in the choppy high seas off the Mumbai coast.

Sical has been operating OSVs for ONGC for over 15 years since 1987 and has won the operations and maintenance contract consecutively for the fifth time in June 2007.

The multi-purpose OSVs are considered a lifeline for the Bombay High rigs as they transport heavy equipment from the coast to the rigs, carry fire-fighting equipment, water, food and help maintain the rigs. Depending upon the facilities on board, the OSVs command a daily rent of $14,000 to $ 100,000 a day. The hiring rates would now shoot up due to ONGC's urgent requirements, say industry sources.