The Hindu Business Line : Shipping cos providing offshore services may join hands

Coming together
The proposed association is likely to consider developing standard contract agreements for various functions in the sector.
Take up issues concerning the industry with the Government.
It also plans to estimate industry demand projections for various activities.

Mamuni Das

New Delhi, Aug 21

With an aim to synergising operations in the offshore service sector, domestic ship-owners are considering a move to create a common platform to address various issues on the lines of the UK Offshore Operators Association (UKOOA).

The proposed association, which may be formed under the aegis of the Indian National Shipowners Association (INSA), is likely to consider developing standard contract agreements for various functions in the sector, take up the concerns of the industry with the Government and estimate industry demand projections for various activities, amongst others.

“These plans are at the drawing board stage,” said sources. “We have had early round of discussions with ship-owners and oil and exploration firms,” they said.

Logistics support

With two-thirds of India’s total crude production accruing from offshore, companies in the offshore service providing space are witnessing high demand for activities such as logistics support (through offshore supply vessels, multi-service vessels, platform supply vessels), drilling, construction and maintenance support, diving, geotechnical services and floating production storage and offloading.

The Indian registry has about 90 offshore supply vessels, and several firms have embarked on fleet expansion plans.

Marine logistics

“Since most of the blocks offered are in offshore area, there would be an increased exploration and production activity in the deep-water area, resulting in the increased demand for marine logistics services,” they said.

Offshore services

Now, while Indian players are facing problems such as shortage of yard space and trained manpower, they also want a level playing field vis-À-vis foreign operators through an easier fiscal regime for the offshore service segment.

There are also safety issues such as threats to offshore installations from drifting vessels.

“It is to address these issues in a collective manner that we feel the need to set up an association.

“While we are unlikely to do all the activities that UKOOA does since the Indian industry requirements are different, we would not like to reinvent the wheel in several areas,” said sources.

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