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In a move that may cripple the nation's oil and gas production, the shipping ministry has issued new norms for operation of vessels in the Indian waters that will force leading operators like Oil and Natural Gas Corp and Reliance Industries to shut offshore operations.
DG Shipping had on May 15 barred operations of all categories of vessels that are more than 25 years old. The move that probably was aimed safety of operations of cargo vessels has hit the oil industry hard.
"Our offshore oil and gas operations will collapse if these orms are implemented," ONGC chairman and managing director R S Sharma said.
Offshore supply vessels and multi-purpose supply vessels among others provide logistic and operational support to oil and gas exploration and production in offshore areas.
ONGC has over 100 such vessels supporting oil and gas production from fields like Mumbai High and aiding exploration in new prospects. Similarly, Reliance has 40-plus vessels that are helping it bring to production its largest gas field in Krishna Godavari basin.
The vessels used in oil operations are upgraded from time to time and meet all safety parameters but almost all of them are more than 25 years old. If the new norms are applied, companies like ONGC and Reliance will have to shut their offshore operations as newer vessels in a tight global market are not easily available.
"Oil business is unlike other shipping operations. Our vessels are certified by international safety agencies and are under-written by global insurers. They meet the strictest of safety norms anywhere in the world," Sharma said.