Sembmarine Kakinada Limited (SKL), a joint venture of Singapore-based Sembawang Shipyard Pvt Ltd and Kakinada Seaports Ltd, has announced the establishment of a shipyard at Kakinada port at an estimated cost of $375 million to cater to offshore units and merchant vessels operating in Indian waters.
The facility will be developed in three phases over three to five years. The contours of the funding arrangements are being worked out and will be finalised in the next three months. SKL Director Kris Nittala said, “We are presently looking at a 30:70 agreement for infusing funds for the construction of the yard which may go up to be a 50:50 venture of the two companies.”
The shipyard, which is expected to commence operations by the end of 2010, will offer integrated services to offshore vessels and merchant ships for construction, conversion, repair and servicing works.Ong Poh Kwee, deputy president of Sembcorp Marine and managing director of Sembawang Shipyard said, “The Krishna-Godavari and Mahanadi basin areas are exploration hotspots. We are optimistic of the region’s growth in terms of shipping and offshore activities, which will provide sustainable growth to our company.”
Transocean Offshore International Ventures Limited India, a subsidiary of Transocean USA, Aban Offshore Limited and MARCAS have entered an agreement with SKL to use the shipyard’s facilities to support their ongoing drilling units.
