Great Offshore looks for acquisition

Written by Agencies | Mumbai, August 27: | Updated: Aug 27 2008, 16:33pm hrs
Great Offshore has said it is looking for acquisition of deep water assets as there was a strong demand for them.

"We are looking at all opportunities that would add value to the company," Great Offshore Vice-Chairman and Managing Director Vijay K Sheth said in Mumbai.

Last month, the company had withdrawn from acquiring the UK-based Sea Dragon Offshore for USD 1.4 billion.

The company had said it was discontinuing the purchase of a controlling stake in an overseas body corporate which has on order two semi-submersible drilling rigs. "The costs were going up and there was a delay in the delivery of the two rigs," Sheth said.

Great Offshore, which provides services ranging from drilling to marine construction, was negotiating with Sea Dragon for eight months. However, in July, Great Offshore said it would be taking delivery of only one rig and not two.

Withdrawal of the deal did not have any adverse implication, financial or otherwise on the company, he said. These two semi-submersible drilling rigs are capable of operating at water depth of upto 10,000 feet and drilling to a depth of up to 30,000 feet.

Globally, there is a demand for semi-submersibles because of an increase in deep-water drilling activities and not many rigs are available.

If Great Offshore had been successful in Sea Dragon's acquisition, then the deal would have been the biggest overseas buy by an Indian offshore company.

Earlier, Chennai-based Aban Offshore had bought Norwegian firm Sinvest for USD 1.3-billion.