ONGC and SCI join hands for offshore logistics

New Delhi, Mar 8: Public sector Oil and Natural Gas Corporation Ltd (ONGC) and Shipping Corporation of India (SCI) will set up a joint venture company -- Offshore Marine Services Ltd (OMSL) -- to provide end-to-end solutions for vessel operations.

The JV company will also develop capabilities for acquisition, repair and maintenance of offshore floating units and undertake repair and construction on long term arrangement with shipyard facilities on preferential terms and competitive basis.

As per the MOU, ONGC will give its vessels on bare boat charter agreement to the JV Company and will retain right of first refusal on deployment of these vessels as per requirement.

It will also acquire, own, maintain, operate and charter a wide range of offshore vessels and it will also be free to secure non-ONGC business including acquiring vessels and other assets.

ONGC will also have the option to acqure new vessels and put them in the JV on similar agreement.

In this venture another partner PSA Marine, Singapore which is a wholly-owned subsidiary of PSA International - a Singapore Government company -- will provide services and repair to the vessels under the joint venture. It is also proposed that financial institutions shall have 30 per cent stake in this non-PSU joint venture.

The MOU was inked last evening in Mumbai between ONGC, CMD Subir Raha and CMD, SCI, S Hajara.

UNI