MOL in talks with Indian OMCs for joint ownership of oil carrier vessels

Mitsui O.S.K. Lines is holding talks with Indian OMCs for joint ownership of oil carriers as it plans to expand its India-flagged fleet by 60-70% amid rising focus on domestic shipbuilding

Tokyo-headquartered Mitsui O.S.K. Lines (MOL) is in talks with India’s oil marketing companies (OMCs) for joint ownership of oil carriers, Anand Jayaraman, executive officer, South Asia and Middle East region, told Business Standard in an interview.

 

“As a ship owner, we are closely watching the development of India’s shipbuilding industry and its ecosystem. We are regularly in discussions with some of the shipyards in India. We stand to benefit as more countries start to make ships,” said Jayaraman.

 

State-owned Shipping Corporation of India (SCI) is set to form a joint venture with India’s three oil marketing companies — Indian Oil (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) — to purchase and operate ships for the transportation needs of the oil companies.

 

Last month, MOL signed a 15-year term charter contract with state-run Oil and Natural Gas Corporation Ltd (ONGC) for building two very large ethane carriers (VLECs). MOL also signed a long-term liquefied natural gas (LNG) carrier charter agreement with state-run GAIL India.

 

Meanwhile, the Japanese firm plans to increase its India-flagged vessels fleet by 60–70 per cent in the next four to five years as the Indian government bets big on developing the shipping industry, said Jayaraman. MOL, the world’s second-largest fleet owner by fleet size, currently has 13 India-flagged vessels.

 

“India’s shipping sector is expected to become self-reliant. The government’s initiative for the expansion of shipping and shipbuilding industries is a very welcome move. India is the fastest-growing economy and we see an opportunity for us,” said Jayaraman.

 

To revitalise India’s shipbuilding and maritime ecosystem, the Union Cabinet approved a corpus of ₹69,725 crore in September 2025. The fund would be utilised to expand domestic shipbuilding capacity, promote greenfield and brownfield shipyard development, and improve long-term financing for the sector.

 

Underlining the high capital requirement of the shipbuilding industry, Jayaraman said initial handholding by the government remains of utmost importance for development of the sector in India.

 

Expanding India footprint

 

To tap into India’s growing energy landscape, MOL might look at investing in a liquefied natural gas floating storage and regasification unit (FSRU) in the country, said Jayaraman. “The on-land LNG terminals are more of oil companies’ speciality; we are interested in FSRUs. MOL Group owns and operates FSRUs globally and we might look into more FSRUs as demand in India picks up,” he said.

 

MOL has reportedly partnered with SWAN Energy for an FSRU in Jafrabad. Jayaraman did not comment on the partnership.

 

Unlike an on-land LNG terminal, FSRUs typically require lower capital expenditure and offer flexibility to operators as the terminals can be relocated. FRSUs, however, have lower capacity than a traditional LNG terminal. Jayaraman added that the Japanese firm plans to expand in areas including real estate and clean energies to deepen its presence in India.