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ONGC signs deal for offshore vessels

ONGC signs deal for offshore vessels
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First Published: Thu, Mar 22 2007. 12 18 AM IST
Updated: Thu, Mar 22 2007. 12 18 AM IST
Mumbai: India’s largest oil explorer, state-owned Oil and Natural Gas Corporation Ltd (ONGC), has hired five offshore support vessels from the state-owned Shipping Corporation of India (SCI) for Rs3.4 lakh ($7,700) per day, to support its drilling and production activities on the east and west coasts of India.
The total value of the five-year contract is estimated to be in excess of Rs300 crore.
Each of these offshore support vessels (OSVs) have a pulling power of 60 tonnes and can anchor in deep water and maintain stability even in rough sea conditions.
In the tendering process, SCI had quoted a rate of $8,000 per day, but agreed to reduce this by $300 per day per OSV after negotiations. There is no annual escalation clause in the OSV contract. ONGC is negotiating with SCI to hire five more OSVs and the final contract price is likely to be in the region of $6,950 per day per OSV, said ONGC officials.
ONGC is also negotiating with Greatship India Ltd, the offshore subsidiary of Great Eastern Shipping, Garware Offshore Services Ltd and Great Offshore Ltd to hire more OSVs to expand its exploration and production activities in the country.
Though day rates for support vessels have gone up in the global market, ONGC has been able to get rates that are lower than the prevailing market rates.
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First Published: Thu, Mar 22 2007. 12 18 AM IST
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