Srei Infrastructure’s subsidiary, Quippo Oil and Gas Infrastructure Limited, has sold its investment in the derrick lay barge ‘Quippo Prakash’ to SapuraKencana of Malaysia.
The vessel was sold at an enterprise value of $122 million (around Rs 635 crore). Srei had a 38% stake in Quippo Prakash through Quippo Oil and Gas Infrastructure, a 100 per cent subsidiary of Srei Infrastructure Finance.
Quippo Oil and Gas Infrastructure, which is primarily in the business of owning and operating onshore drilling rigs, also held a substantial equity stake in the Quippo Prakash. The investment in the barge was made in 2008, at a time when the downturn in the offshore markets allowed Quippo Oil and Gas Infrastructure to negotiate favorable terms from shipyards.
Outfitted in Singapore and commissioned in 2010, the state-of-art offshore construction support barge upon delivery was placed on term charter with a major offshore contractor in South East Asia, generating positive returns and cash-flows immediately.
Sunil Kanoria, Vice-Chairman, Srei Infrastructure, Finance Limited, said: “The offshore oil and gas construction market has shown a sharp upswing since the time Quippo Oil and Gas Infrastructure had invested in the vessel. Having invested when the market had bottomed out, Quippo Oil and Gas Infrastructure took advantage of the present buoyant conditions to exit its investment. Srei has been creating a portfolio of strategic investments over the past years and as and when there is an opportunity of encashing with a good return, it does so.”
Equipped with a 2000MT crane, the barge was designed to provide offshore construction support and underwater pipe-lay capability. With increasing levels of activity in the subsea construction market, the vessel had generated considerable interest amongst major offshore contractors.