The Hindu Business Line : ONGC, SCI join hands for offshore logistics venture

As per the MoU, ONGC will offer its vessels on bare boat charter agreement to the joint venture company and will retain right of first refusal on deployment of these vessels as per requirement.

New Delhi , March 8

Oil and Natural Gas Corporation Ltd (ONGC) and Shipping Corporation of India (SCI) have entered into a memorandum of understanding (MoU) for setting up a joint venture company called Offshore Marine Services Ltd (OMSL).

The MoU was inked on Tuesday by the ONGC Chairman & Managing Director, Mr Subir Raha, and the SCI Chairman & Managing Director, Mr S. Hajara. This joint venture company will provide end-to-end solutions for vessel operations for ONGC and other oil and gas companies, according to a press statement issued by ONGC. It would 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 offer its vessels on bare boat charter agreement to the joint venture company and will retain right of first refusal on deployment of these vessels as per requirement. The joint venture company will acquire, own, maintain, operate and charter 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 acquire new vessels and put them in the joint venture company 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. It is also proposed that financial institutions shall have 30 per cent stake in this non-PSU joint venture.

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