Garware Offshore Services Orders Four New Platform Supply Vessels Worth Rs 4.30 Billion

Strategic Insights -

Garware Offshore Services Ltd, a leading player in the Indian offshore services sector, has taken a significant step towards expanding its fleet by ordering four new platform supply vessels (PSVs) from a Norway-based ship building yard. The vessels, worth Rs 4.30 billion (US$93.3 million), are expected to be delivered between 2006 and 2008, with the first one being delivered in October 2006 to a subsidiary of US-based Transocean, the largest rig owner company in the world. This strategic move is expected to boost Garware's presence in the global offshore market, driven by the increasing demand for PSVs due to high crude oil prices. As the company targets a fleet size of 9 to 10 vessels by 2008-09, it plans to expand its operations to new markets, including the North Sea, the Middle East, and South East Asia.

Key Takeaways:

  • Garware Offshore Services Ltd has ordered four new platform supply vessels (PSVs) from a Norway-based ship building yard worth Rs 4.30 billion (US$93.3 million).
  • The vessels are expected to be delivered between 2006 and 2008, with the first one being delivered in October 2006 to a subsidiary of US-based Transocean.
  • The company has secured a three-year contract with the subsidiary of Transocean for the first vessel, which will be deployed for oil exploration in Indian waters.
  • Garware plans to achieve its presence in the North Sea, the Middle East, and the South East Asian markets, targeting a fleet size of 9 to 10 vessels by 2008-09.
  • The high crude oil prices are driving oil exploration at a greater pace, leading to increased demand for PSVs, with approximately 40-50 new PSVs expected to join the globally this year.
  • Aditya Garware, Vice Chairman and Managing Director of Garware Offshore Services Limited, expects that the company will be able to manage the increased demand for PSVs in the near future.

Statistics:

  • Total value of the four ordered PSVs: Rs 4.30 billion (US$93.3 million)
  • Expected delivery dates for the four PSVs: October 2006, April 2007, March 2008, and December 2008.
  • Number of new PSVs expected to join the global market this year: approximately 40-50.
  • Targeted fleet size for Garware Offshore Services Ltd by 2008-09: 9 to 10 vessels.
  • Number of vessels in Garware's current fleet: not specified.

Sources:

  • Asia Pulse
  • PTI (Press Trust of India)
  • BSE (Bombay Stock Exchange) - Garware Offshore Services Ltd (BSE:501848)