SCI seeks operation of ONGC’s offshore vessels

Kailash Rajwadkar

Mumbai, Oct 14: Shipping Corporation of India (SCI) is in talks with Oil and Natural Gas Commission (ONGC) to operate the latter’s fleet of off-shore vessels (OSVs). The operations of OSVs would result in net revenue inflows of around $300 per day to SCI. The gross revenue works out to $3,000 per day while the expenditure incurred would be around $2,700 per day, officials said.

If the deal materialises (a formal decision is expected in the next three to four months), it would add one more revenue stream to the maritime major.

ONGC’s fleet of around 25 OSVs are currently managed by comparatively small operators who were effective cost-wise, but did not fare well on maintenance of the vessels due to their approach of cutting corners. The negligence resulted in massive wear and tear of the OSVs, SCI officials said.

SCI is also looking at outsourcing ship management services to minimise the constraints faced in manning the crew, port management and taxation. SCI’s average crew manning levels of its vessels are around 36-38 members as against the 25-26 members per vessel by private ship management companies.

SCI, with an employee strength of 8,293, of which 6,862 are off-shore staff, is likely to bring down its operating costs by roping in private ship management companies to man its ships, sources said.

Meanwhile, SCI is unlikely to pursue its fleet acquisition programme of eight tankers, two bulk-carriers and three container vessels for the fiscal 2000-01. This coupled with the backlog of the previous year is likely to put SCI short of its ninth plan target by around 17 vessels as per the enabling provision of the original ninth plan.

However, this has not deterred the ministry of shipping from announcing the tenth plan target for SCI at GRT of 1.498 mn MT.