Great Offshore lines up $230-mn capex programme

Mumbai: Integrated offshore oilfield services provider, Great Offshore, has lined up a capital expenditure programme of $230 million for acquisition of a multi support vessel and a jack-up rig.

While the multi-support vessel is expected to join the company’s fleet in the second quarter of 2009-10, the rig will be delivered during the fourth quarter of 2008-09, Mr Vijay Sheth, Vice-Chairman and Managing Director of the company said.

The company currently has a fleet of 40 vessels, including two drilling vessels and 26 offshore support vessels.

On the acquisition of the UK-based Sea Dragon Offshore, Mr Sheth, without naming the company, said it had pruned its original offer of buying both the rigs owned by the company to one rig due to changed economics of the project. “We have conveyed to them (about the pruned offer) and we are waiting for a response. It will take some time,” he said.

However, simultaneously the company was “very actively” pursuing other opportunities and “we will get back to you on this in the foreseeable future,” Mr Sheth said.

On the sector outlook, he said ONGC and other exploration and production operators were aggressively chasing development programmes. “The viability of marginal fields has also added a further dimension to the offshore activities within the country.

As per the Directorate General of Hydrocarbons, the basin area is relatively under explored, given that only 21 per cent has been extensively explored and around 32 per cent only partially explored.” Under the first six rounds of NELP, 154 blocks were awarded, out of which about 60 per cent (94 blocks) are offshore. And of these offshore blocks, 64 per cent are deep water blocks.

“Again as per the Directorate General of Hydrocarbons, of the eligible 3.14 million sq km of sedimentary area, 2.15 million sq km are being licensed. About 58 per cent is located offshore, with 0.86 million sq km being located in deep waters,” Mr Sheth said.