Garware Offshore to Acquire Barge for $25M

Diversifying services from its core business of leasing out ships for oil and gas exploration, Garware Offshore Services Ltd. is acquiring a construction barge from a Chinese manufacturer for $25m. According to a company official, the deal details have been discussed and the order would be finalized sometime this week. The barge, to be delivered by the second quarter of 2009, is being acquired through 100 per cent financing via its Singapore subsidiary on a bareboat charter basis. The deal gives Garware an option for a second order, too. The name of the Chinese company was not disclosed. These barges are required for the maintenance of oil and gas exploration platforms and have an earning potential of $25,000 per day in India, in fair weather conditions. Meanwhile, realizing the demand for new vessels for deep water drilling activities, the company had ordered two new platform supply vessels (PSV) and anchor handling tugs (AHT) each. The vessels are due to be delivered by the end of 2008. The new AHTs would also give the company an edge over the 25-odd AHTs in the country, which are all more than 20 years old. The company has chartered two of its PSVs and four of its existing AHTs to ONGC and is looking forward to renewal of the contract of one of the PSVs with British Gas with a rate hike of 15-20 per cent in January 2008, Akolkar said. He, however, denied any plans to enter ship-building presently. [Source: http://sify.com]