The Hindu Business Line : Great Offshore may be listed by Dec 27

Great Offshore Ltd, the new company born after the de-merger of Great Eastern Shipping's offshore business, is hopeful of getting listed by December 27.

"We have completed all the necessary formalities from our side," Mr Vijay Sheth, Managing Director of the company, told presspersons after the company's first AGM on Tuesday.

Putting an end to the confusion regarding a non-compete clause with Greatship India Ltd (GIL), a wholly owned subsidiary of Great Eastern Shipping, Mr K.M. Sheth, who is the Chairman of both the entities, clarified that there was no non-compete clause between the two. "Both the companies (GOL and Great Eastern Shipping) are free to compete with each other and other players in the offshore space, which would be beneficial to the oil exploration companies and the respective stakeholders," he said.

Mr Sheth had to retract his earlier statement that the two companies shared a non-compete clause for one year, which is due to expire in October 2007. He had mentioned about the non-compete clause while talking to presspersons after Great Eastern Shipping's AGM on Monday and repeated it at the GOL's AGM on Tuesday.

However, towards the end of the meeting, Mr Sheth intervened to clarify that there was no non-compete clause between GOL and GIL.

Mr Vijay Sheth added that the two companies would follow their own set of business principles and direction, keeping corporate governance and its traditional business values in tact.

Both GOL and GIL appear to be gearing up to compete with each other in the growing market for offshore exploration support solutions.

GOL has lined up a capital expenditure plan of $125 million for the current fiscal, $60 million for the next fiscal and another $165 million for 2008-09. The company, which has a total offshore fleet of 38, has on order three offshore supply vessels, which would join the fleet by September 2008, and a jack-up rig that is being built in Bharati Shipyard.

GIL, which has so far invested $380 million to acquire offshore support vessels and drilling rig, is investing another $120 million for fleet expansion.

Mr Vijay Sheth said the offshore segment offered tremendous opportunities for companies engaged in offshore support solutions.

"The number of rigs operating in India has increased from 35 in 2005-06 to 42 at present, including jack-up rigs, drill barge and platform rigs. ONGC, along with its overseas arm OVL and ONGC Mittal Energy and RIL have been scouting for (exploration) opportunities all over the world. All this means tremendous opportunities for us," he said.

The company registered a total income of Rs 349.74 crore in its first year of operation, 2005-06, with a net profit of Rs 91.80 crore. For the year, the company declared an equity dividend of Rs 5.10 per share.

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