GE Shipping, ONGC to vie for vessels tender

The mega tender for 30 offshore support vessels (OSVs) by Oil and Natural Gas Corporation (ONGC) will witness face-to-face competition from Great Eastern Shipping Company's (GE Shipping) subsidiary and its de-merged offshore entity Great Offshore (GOL).

GE Shipping executives said both Greatship ( India) ""GIL""and GOL would compete for this mega tender independently.

All offshore and shipping majors are participating in this mega ONGC tender for 30 vessels comprising Anchor Handling Tug cum Supply Vessel (AHTSVs) and Platform Supply Vessels (PSVs). The tender is likely to open by early January 2007.

Earlier, GE Shipping, India's largest private sector shipping firm, had spun off its offshore oilfield services business into a separate company, GOL. Upon de-merger of the offshore division, the entire fleet of offshore vessels, as on the effective demerger date 1 April,2005, has transferred to GOL.

"The Great Eastern (Fujairah) LLC ""FZC, Fujairah and Deep Water Services (India) and the other subsidiaries related to the offshore services business have been transferred to GOL upon the de-merger becoming effective," company executives said.

Industry analysts pointed out that this would be first instance where two entities fighting for a mega tender with a common Chairman. GE Shipping Executive Chairman K M Sheth is the Chairman for GOL, as per the de-merger plan. GE Shipping, following the de-merger, has floated a wholly owned subsidiary, GIL, with an investment of Rs 250 crore.

"Offshore sector is booming. Oil and gas would be always our main focus. Towards offshore, we have already acquired one OSV. Nine more vessels are on order for GIL," Sheth said.

Meanwhile, GOL will be listed on the bourses by early next week. The scrip will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE). "The listing could take place on 26 th of December," sources said.

"GOL has secured necessary clearances from the Securities and Exchange Board of India (Sebi) and it has submitted various documents to BSE and NSE for complying listing requirements," sources added.