Domestic players are eyeing offshore shipping business.

The companies have firmed up acquisition plans to add various offshore support vessels and marine construction assets.

The current players in offshore oilfield services sector include the Great Offshore [Get Quote] Limited, Garware Offshore Services [Get Quote], Varun Shipping Company [Get Quote], the Shipping Corporation of India [Get Quote], South East Asia Marine Engineering & Construction, Dolphin Offshore Enterprises India, Essar Shipping [Get Quote] and Oil and Natural Gas Corporation.

Oil and gas accounts for around 30 per cent of India's total energy consumption and 70 per cent of total country's oil consumption is met through imports with domestic gas production sufficient for domestic consumption, industry analysts said.

"About 72 per cent of domestic gas consumption comes from offshore with ONGC [Get Quote] (Mumbai High) contributing to 55 per cent of total domestic production, rest 17 per cent contributed by private and joint sector JV companies," they pointed out.

Towards offering domestic and international offshore marine services, SCI has recently signed Memorandum of Understanding between Oil and Natural Gas Corp to form a non-PSU joint venture company while Varun Shipping had earmarked Rs 450 crore (Rs 4.5 billion) for this calendar year to enhance offshore fleet.

Great Offshore has already earmarked $86 million for acquiring two Platform Support Vessels and four Anchor Handling cum Towing Supply Vessels.

Great Offshore is the company to be formed followed by demerger of offshore business from Great Eastern Shipping Company [Get Quote].

GE Shipping currently own and operate 33 offshore assets. The six Offshore Support Vessels on order will be transferred to Great Offhsore. Earlier, the Bombay high court on January 27 had approved the demerger of the offshore business.

Meanwhile, Garware Offshore is planning to float an overseas subsidiary for acquiring offshore supporting vessels. With this company is expected to pitch for Indian and overseas business.

The company has plans to acquire two AHTSVs and one PSVs for Rs 250 crore (Rs 2.5 billion). With this fresh acquisition plans and existing orders, the company will have a fleet of 10 vessels with six AHTSVs and four PSVs.

Dolphin Offshore has joined hands with Middle East-based company NaftoGazfor installation and commissioning of offshore platforms, pipelines and Single Point Mooring. The company has recently placed orders for work boat cum supply vessels which will be delivered by September 2007.

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