Garware Offshore in talks with Havyard

The Mumbai-based Garware Offshore Services is in talks with Norwegian shipyard Havyard Leirvik AS over a cross marketing deal involving ONGC and the Shipping Corporation of India. ONGC and SCI need about 28 and 5 new offshore vessels respectively and Garware Offshore has submitted its expression of interest with both the Indian shipping companies.

Recently, officials from the Norwegian shipyard had held talks with ONGC and SCI and, if Garware Offshore Services bags the ONGC order then it would stand to gain between 3 and 5 % of Rs 1,700 crore, the cost of building 28 vessels. With the shipping industry witnessing a boom, shipyards across the globe are running at full capacity and any order placed now would take at least three years to deliver.

Garware has ordered about four offshore vessels from Havyard Leirvik AS, which will be delivered in two years. Company officials said there is lot of activity taking place in the exploration and production sector and there is a shortage of offshore vessels in Indian seas.