ONGC plans Rs 4,000 cr vessel acquisition

The Oil and Natural Gas Corporation (ONGC) has drawn up a $ 876 million (nearly Rs 4,000 crore) investment plan for replacing its ageing offshore vessels.

"The company is planning to replace the ageing offshore vessels in two phases, with the first phase costing $ 600 million," a senior ONGC executive said.

Over 48 per cent of ONGC's fleet of offshore support vessels (OSVs) and anchor handling tugs (AHTs) are more than 20 years old and needs replacement. Jack-up drills of the company are also an average 30 years old.

"ONGC is planning to acquire one multi support vessel (MSV), 17 OSVs and AHTs and two jack-up drill by 2009. It will also acquire 19 OSVs and AHTs by 2010," he said. The company has also plans to acquire other special vessels used for exploration assistance and seismic surveys.

At present, ONGC has a fleet of 61 OSVs and ATHs with 31 of them owned by the company while 30 are under charter. It owns two MSV and one under charter. It also have a fleet of 24 jack-up rigs (16 under charter) and 6 drill ships (4 under charter).

"The company has a floating asset strategy of 60 per cent ownership and the rest chartered or hired. The percentage of chartered ships fluctuate on the basis of supply and demand but we want to avoid a situation where we are entirely depending on the chartering model," the executive said.

He said the company was now focussing more on marine logistics which would handle transportation of men and material with high safety standards. This also includes search and rescue operations, anchor handling activities and rig move operations. "To meet the increasing requirements of the company we need a large offshore fleet. However, we will retain the 60:40 proposition in owning and chartering the fleet," he added.

Alongside, ONGC is learnt to have initiated talks with the Western Australian government for oil and gas exploration. It already holds a majority stake in an Australian oil block, Browse.

ONGC and GAIL are also in talks with the Australian government about importing more liquefied natural gas from the state.