ONGC DP Vessels

Hello sir, I heard from somewhere that ONGC hired vessels from ABG shipping?

[Rajkumar Agarwal]

Yes , This is true that ONGC hired vessels from ABG shipping.
Even as the global boom in oil exploration and production has led to record hike in prices of drilling and shipping equipment,

The Oil and Natural Gas Corporation (ONGC) Ltd has successfully hired seven offshore support vessels (OSV).

Five of these OSVs have been hired from ABG Shipping Ltd for a five-year period at below market prices, which has allowed India’s largest oil and gas Exploration Company to limit the rise in cost of this Infrastructure.

ABG Shipping is a group company of Bombay stock exchange-listed ABG Shipyard Ltd, one of the largest private sector shipyards in the country. As per the deal to be signed shortly, ONGC will pay $6,300 (Rs2.78 lakh) per day to ABG Shipping for each of the three OSVs having dynamic positioning (DP) and fire-fighting capabilities with a pulling power of 60 tonnes. DP allows ships to anchor in deep water and maintain stability even in rough sea conditions.

ONGC will also pay $7,200 per day to ABG for each of the two OSVs having DP, fire-fighting capabilities and pulling power of 80 tonnes. In comparison, Norwegian firm Rolv Berg Drive has bagged a deal from ONGC for one OSV with DP, fire-fighting capabilities and pulling power of 120 tonnes, for which it’s charging $15,900 per day.

Now more Indian firms are buying this equipment to increase their share of the pie. DP Jindal Drilling has also ordered two rigs from Keppel Fels. Offshore business provides revenue stability to companies compared with the normal shipping business.

“As against voyage contracts (where the ship is hired for a single journey) in normal shipping business, offshore sector has contracts ranging from three to five years