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Sembawang Shipyard on Monday said it has doubled shareholding stake in Sembmarine Kakinada Ltd (SKL) to 40 per cent and extended technical management and services agreement to 10 years from the existing five years.
Earlier, Sembawang held 19.9 per cent stake in SKL, a joint venture with Kakinada Seaports Ltd.
The increased shareholding would make Sembawang the single largest stakeholder in SKL, which has initial investment of $50 million after the joint venture was set up in November 2009, parent of the Singapore shipyard, SembCorp Marine said.
The Technical Management & Services Agreement to operate and manage SKL would also be extended to 10 years from the current five years.
strategically located
Sembcorp said SKL is part of its strategy to establish and grow a hub in India to cater to the growing needs of its customers operating in India and South Asia.
SKL is an integrated marine and offshore facility strategically located, one of the world's key oil and gas exploration areas.
Located between Vishakhapatnam and Chennai Port, the shipyard is well-placed to cater to offshore drilling units and merchant vessels trading or operating along the eastern coast, Sembcorp said.
The Sembawang Managing Director, Mr Ong Poh Kwee, said, “SKL is well-positioned to capitalise on the huge development and long-term growth potential of the offshore industry in India and South Asia.
“Through our increased stakeholding and long-term commitment, SKL will be able to leverage on the capabilities and expertise of Sembcorp Marine and in particular Sembawang Shipyard for sustainable growth”.
One-stop facility
“We are confident that SKL is on track to become a one-stop integrated offshore service facility by the end of 2012, catering to the growing needs of our customers operating in India and South Asia. SKL would be developed in three phases to offer ship owners and offshore operators a one-stop integrated offshore service facility for the repairs and servicing of offshore vessels and ships, new buildings, oil and gas riser/equipment repairs as well as platforms and modules fabrication by the end of 2012,” he added.
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