Business Standard

Shipping industry on asset acquiring binge

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P R Sanjai Mumbai
Buoyed by huge expansion plans of domestic and international oil majors in the offshore space, Indian shipping companies are planning to take a plunge by acquiring assets such as offshore supply vessels (OSVs), platform supply vessels (PSVs), anchor handling tug-cum-supply vessels (AHTSVs) and multi-support vessels (MSVs).
 
Companies including Mercator Lines, Indian Oiltanking, Shreyas Shipping, SKS Logistics, Pratibha Shipping, West Asia Maritime and other small players are planning to get into the offshore segment.
 
Offshore support ships are generally used to transport man, machine and material to help oil and gas exploration and production activities taking place on the offshore rig.
 
The existing offshore shipping service companies are busy augmenting their fleet to capitalise on the huge shortage of offshore support assets.
 
Pratibha Shipping managing director Sunil Pawar said: "We are foraying into the offshore segment by acquiring three to four floating production storage and offloading (FPSO) vessels."
 
Indian Oiltanking (IOTL), a 50:50 joint venture between Indian Oil and Oiltanking GmbH of Germany, is planning to acquire OSVs to cash in on the boom.
 
What has triggered off this sudden binge is the fact that India is readying itself for the seventh round of the New Exploration and Licensing Policy (NELP-VII), in which world's largest oil companies are likely to participate.
 
"Under NELP-VII, 80 "� 85 blocks will be auctioned to the oil majors. This will fuel demand for the offshore shipping assets," said an industry analyst.
 
Incidentally, DG Shipping has recalled 27 offshore vessels of the ONGC, citing safety reasons. This has also created an acute shortage in the market.
 
Existing players
 
  • Great Offshore
  • Garware Offshore
  • Greatship India
  • SCI
  • Sical Logistics
  • Dolphin Offshore
  • Varun Shipping
  • Seamec
  •  
    New players
  • Mercator Lines
  • Indian Oiltanking
  • Shreyas Shipping
  • West Asia Maritime
  • SKS Logistics
  • Pratibha Shipping
  •  
     

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    First Published: Aug 08 2007 | 12:00 AM IST

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