ONGC, SCI Enter MoU

Oil & Natural Gas Corporation Ltd. (ONGC) and Shipping Corporation of Indian (SCI) have entered into a memorandum of understanding (MoU) for setting up a joint venture company called Offshore Marine Services Ltd (OMSL). The joint venture company will provide end-to-end solutions for vessel operations for ONGC and other oil and gas companies. It will also 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. ONGC will give its vessels on bare boat charter agreement to the joint venture and will retain right of first refusal on deployment of these vessels as per requirement. The joint venture will acquire, own, maintain, operate and charter wide range of offshore vessels and it will also be free to secure non-ONGC business including acquiring vessels and other assets. ONGC will also have the option to acquire new vessels and put them in the joint venture company on similar agreement. In this venture Singapore government owned PSA Marine, a wholly-owned subsidiary of PSA International, will provide services and repair to the vessels under the joint venture. It is also proposed that financial institutions shall have 30% stake in this non-PSU joint venture. (Source: Daily News & Analysis)