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Shipping Corp to revive JV with ONGC

Shipping Corp to revive JV with ONGC
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First Published: Sun, Aug 31 2008. 01 21 PM IST
Updated: Sun, Aug 31 2008. 01 21 PM IST
By PTI
New Delhi: Shipping Corp of India is working on reviving its proposed joint venture with the Oil and Natural Gas Corporation and is also scouting for a third partner.
In March 2006, SCI and ONGC had signed a memorandum of understanding to float the joint venture company Offshore Marine Services (OMSL). The MoU, which was valid for a year, has since lapsed.
As per the agreement signed then, PSA Marine, a wholly-owned subsidiary of Singapore government entity PSA International, was to provide repair services to the vessels.
In the planned JV, SCI and ONGC were to have 24.5% stake each in the venture, while PSA Marine would hold 21%, while financial institutions were to hold the remaining 30%.
PSA Marine, however, backed out from the venture later that year. OMSL was envisaged to provide end-to-end solutions in vessel operations for ONGC and other oil and gas companies.
It was also to develop capabilities for acquisition, repair and maintenance of offshore floating units and undertake repair and construction on a long-term arrangement with shipyard facilities on preferential terms and competitive basis.
SCI is looking for a third partner, who could make value-additions such as ship building or extend expertise in the area of offshore logistics, the official said.
“The third partner could be a foreign firm,” he said, but declined to give further details about the search criteria.
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First Published: Sun, Aug 31 2008. 01 21 PM IST