Bharati Shipyard to build oil rigs

Private shipyard major Bharati Shipyard has firmed up plans to foray into oil rig construction. The company, which operates three yards currently, has tied up with reputed US-based oil manufacturing company for the project.

The development comes with domestic majors crowding the Indian offshore space scouting for brand new oil rigs, which cost around Rs 900 crore.

P C Kapoor, chairman and managing director, said: "We taken steps in direction of rig construction and the project is likely to take off within three months."

However, he declined to name the US company.

According to industry analysts, Bharati Shipyard would be the only domestic shipyard to have expertise to construct oil rigs. Keppel FELS of Singapore is the leading shipyard of the world building jack-up rigs and controls about 70 per cent of the new buildings order book of the world.

"There other small yards in Netherlands apart from Keppel. However all yards, including Keppel FELS, are full. Meanwhile charter hire rates for high specification jack-up rigs grew over 100 per cent," industry sources said.

The oil rig building facility will be developed in Bharati Shipyard's new site in Mangalore yard. The company has earmarked Rs 500 crore for developing Mangalore unit and other existing three yards.

Kapoor clarified that the proposed Mangalore facility will not be capable of very large crude carriers (VLCCs). "We will construct oil rigs, offshore support vessels and other types of vessel both for domestic and export purpose," he said.

The order-book of the company stands at Rs 1,462 crore till date. Meanwhile, companies including Great Eastern Shipping, Mercator Lines, Varun Shipping, Jindal Drilling, Aban Lloyd and other companies are scouting for oil rigs.

Significantly, offshoring drilling count in India is expected to double in next five years with more exploratory well are opening up.

"At present, India has a fleet of over 45 rigs with the Oil and Natural Gas Corporation owing 30 rigs. With new blocks of exploration coming up, jack-up rigs are expected to double in next three to five years," industry sources said.