Shipping Corp to revive JV with ONGC; rope in third partner

Shipping Corp of India is working on reviving its proposed joint venture with the Oil and Natural Gas Corp and is also scouting for a third partner.

"We will begin dialogue with ONGC on the joint venture in about a week. We would also rope in a third partner for the joint venture," a senior SCI official told PTI.

In March 2006, SCI and ONGC had signed a memorandum of understanding to float the joint venture company Offshore Marine Services (OMSL). The MoU, which was valid for a year, has lapsed.

As per the agreement signed then, PSA Marine, a wholly-owned subsidiary of Singapore government entity PSA International, was to provide repair services to the vessels.

In the planned JV, SCI and ONGC were to have 24.5 per cent stake each in the venture, while PSA Marine would hold 21 per cent, while financial institutions were to hold the remaining 30 per cent.

PSA Marine, however, backed out from the venture later that year.

OMSL was envisaged to provide end-to-end solutions in vessel operations for ONGC and other oil and gas companies.

It was also to 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.

SCI is looking for a third partner, who could make value- additions such as ship building or has expertise in the area of offshore logistics, the official said.

"The third partner could also be a foreign firm," said the official, but declined to give further details about the search criteria.