Garware Offshore orders barge

Diversifying services from its core business of leasing out ships for oil and gas exploration, Garware Offshore Services Ltd in India is acquiring a construction barge from a Chinese shipyard for $25 million. According to a company official, the contract details have been discussed and the order will be finalised sometime this week.

The barge, to be delivered by the second quarter of 2009, is being acquired through 100% financing via its Singapore subsidiary on a bareboat charter basis. The deal gives Garware an option for a second barge. The official did not disclose the name of the Chinese builder.

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.

Companies like L&T, which offer such maintenance services, have shown interest in a deal with Garware Offshore, the official said.

Meanwhile, realising the demand for new vessels for deep water drilling activities, the company had ordered two PSVs and two AHTs which are due to be delivered by the end of 2008. A company spokesman said ???We plan to use the vessels delivered in March in the North Sea market for the more-lucrative spot contracts, rather than long-term ones.??

The company would operate the vessels for Havila Shipping, promoted by Havyard Leirvik AS, as part of their earlier MoU for marketing ship designs.