MUMBAI: State-owned Oil and Natural Gas Corporation Ltd (ONGC), India’s biggest oil and gas explorer, is scouting for public sector yards to build four so-called Platform Supply Vessels under a government-mandated plan to boost the domestic shipbuilding industry.
Platform Supply Vessels are specially designed ships which provide various services and support to offshore oil and gas exploration and production activities. These vessels play a critical role in the logistics and operations of offshore oil and gas platforms.
The cost of a new Platform Supply Vessel can vary significantly, ranging from $15 million to $53.6 million or more, depending on size, specifications, and the shipyard. A large PSV (4,500 dwt) could cost around $54 million, while a small to medium-sized one could come at a price tag of between $15 to $30 million, according to a ship broker.
ONGC has started preliminary discussions with all the public sector shipyards for building the PSVs and a limited purpose tender is expected to be floated soon for finalising the contract, a source with knowledge of the plan said. The state-owned yards being sounded out for the order includes Cochin Shipyard Ltd, Hindustan Shipyard Ltd, Mazagon Dock Shipbuilders Ltd and Garden Reach Shipbuilders and Engineers Ltd.
Following a request from an inter-ministerial joint working group set up last year, state-run oil companies have indicated that they require some 112 ships, including 30 Medium Range oil tankers, 24 very large gas carriers and four offshore vessels over the next 10-15 years.
The joint working group has asked oil companies to float tenders for building ships locally and a technical working group has been set up to extend support in writing procurement and tender documents as they lack experience in this. The vessel specifications for MR tankers and very large gas carriers have been frozen, and the effort now is to draw up the procurement and tender documents.
ONGC and Indian Oil Corporation Ltd will likely be the first among PSU oil companies to kick off government plans to build ships locally to support and grow the domestic shipbuilding industry.
“Currently, most of the ships required by ONGC are hired from the market, including those registered overseas. ONGC wants to own a few vessels of different categories as a strategic asset to avoid market fluctuations resulting in extremely high charter hire rates or non-availability of ships,” a government source said.
The plan is being pursued very actively, the source said, noting that ONGC requires special purpose vessels such as diving support vessels, well stimulation vessels, geo technical investigation vessels, anchor handling tugs, platform supply vessels, offshore supply vessels and tankers to support its oil and gas exploration activities.
ONGC could not be reached immediately for comment.
