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Aban plans bid with Qatar Shipping for SCI

A leading Indian oil services firm, Aban Loyd Chiles Offshore Ltd, said on Friday it planned to bid jointly with Qatar Shipping Co for the giant Shipping Corporation of India.

The government, which owns 80 per cent in India's largest shipping line, plans to sell a 51 per cent stake to a strategic partner, and could wrap up the sale as early as June.

"We have signed a memorandum of understanding with Qatar Shipping Co for a joint bid for SCI," said Aban Loyd's managing director M A Abraham.

"We expect to put in a competitive bid that will reflect the prevailing market conditions in the industry."

SCI has a fleet of 94 ships, about 40 per cent of India's total shipping fleet by tonnage, and is a leading carrier of India's oil cargoes. India imports more than 75 million tonnes of crude a year.

Aban, based in Chennai, is a leading provider of rigs and other logistical support vessels for oil exploration and production.

The company last year acquired Hitech Drilling Services Ltd, a major Indian drilling firm, from the Tata group. If Aban wins the bid for SCI, it could become a leading integrated logistics provider for the oil sector.

India's largest private shipping firm, Great Eastern Shipping Company Ltd, has already submitted its expression of interest to bid and local media have reported that Essar Shipping, India's second-largest private line, might also bid.

Canada's Teekay Shipping, Exmar, part of Belgium's CMB group, and Malaysian International Shipping Corporation Bhd are among the foreign shipping lines that Great Eastern Shipping and Essar Shipping have contacted for possible joint bids, according to unconfirmed domestic news reports.

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