Singapore shipyard co, Indian port form JV for marine facility

Singapore-based Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine and Kakinada Seaports today announced a joint venture to establish and operate a marine and offshore facility in India with an investment of $375 million.

The joint venture (JV)-- Sembmarine Kakinada Seaports Ltd (SKL) will develop the marine facility in east coast near Krishna-Godavari and Mahanadi basin area in three phases over 3-5 years.

"We are very optimistic of the region's growth in terms of shipping and offshore activities, oil and gas drilling and exploration, which will provide sustainable growth and expansion for SKSL," Sembcorp Marine Deputy President and Sembawang Shipyard Managing Director Ong Poh Kwee said.

 

Sembcorp Marine (through Sembawang Shipyard) will hold 19.9 per cent share of the JV's initial investment of USD 50 million with an option to increase it to 40 per cent, he said.

"Indian ships at present go to Singapore for repair with a vessel mending cost of anything between $2 million to $200 million and we are hopeful of attracting that business here," he said. Nittala added that the strategic location of SKL between Visakhapatnam and Chennai ports in the east coast of India, which is next to the Gulf of Mexico held huge importance for the oil and gas industry.

"Transocean Offshore International Ventures Ltd, India, a subsidiary of Transocean, USA will sign a 'favoured customer contract' with SKL to use its facilities to support its ongoing offshore drilling units," he said.

Similar contracts will be signed with Aban Offshore, Asia's largest private drilling company V Ships, the world's largest ship management company, to repair its fleet of ships to India, he added.

Kakinada Seaports Ltd (KSL) Managing Director K V Rao said KSL serves more than 3,500 ships annually and together with the expertise of Sembawang Shipyard, it will attract ships and offshore units operating in India's eastern coast.

Rao and Kwee will sign the JV contract for SKL here.