Garware to acquire 3 PSVs

Offshore supply vessels (OSV) service company Garware Shipping Corporation is planning to acquire three Platform Supply Vessels (PSV) at a cost of $62.3 million. These newbuildings will be deployed to support offshore oil and gas exploration activities and Garware has already signed a MoU with Solstad Shipping, a Norwegian

company, for a PSV at the cost of $18.5 million.

This new vessel, a state-of-the-art-technology UT 755, is expected to be delivered by November and will be named MV Everest. The normal working life of these vessels is 25-30 years. Meanwhile, the company is in dialogue with banks for tying up financial

arrangements to acquire two more PSVs. Officials of the company said it is in talks with United Bank of India, State Bank of India and Export Import Bank of India to tie-up necessary funds for acquisition.

“The company is in talks with a Norwegian Shipyard to acquire two PSVs at the cost of $21.6 million each. The delivery of these two vessels is expected to be in October 2006 and April 2007 respectively.

According to shipping analysts, the acquisition of these two vessels would fall at the time of OSVs contract renewal of Oil and Natural Gas Corporation of India (ONGC).