EGS Group, a UK-based global marine survey service provider, is caught in a strange situation. Even though it has a registered company in Hong Kong, EGS-Asia, it cannot operate in China as Chinese authorities see it as a foreign company. Nor can the company operate in India as the defence department has withheld necessary security clearance to it, citing its Hong Kong connection.
EGS Survey, a company set up by some Indians with equity participation from EGS-Asia in 2006 to tap business opportunities in the country, had bagged a contract for acquiring seismic data in ONGC?s deep sea MetOcean project in an international competitive bidding in 2009. But subsequently, ONGC had to scrap the contract because the ministry of defence (MoD) declined to issue clearance, citing the Hong Kong connection of EGS-Asia.
EGS Survey MD PK Tyagi maintains that it is an Indian company because all its employees are Indian and about half of them are retired personnel of the Indian Navy.
EGS-Asia also cannot undertake survey work in Chinese offshore as Chinese authorities see it as a foreign company. The company had bagged a contract for undertaking cable route survey from the US to China. However, it had to sub-contract work relating to survey in Chinese offshore to First Institute of Oceanography, a local company, as it was not allowed to undertake that work as a foreign company.
A senior executive of the company said EGS has made Hong Kong a regional hub for its Asia-Pacific operations because of factors like free port and easy visa rules that make movement of equipment and manpower easier for the company.
Under the Sino-British treaty on handing over Hong Kong, China has retained almost all the previous British laws and regulations including travel, customs, immigration and currency in Hong Kong which make it an attractive business destination.
