May 16, 2008

ABG Shipyard to build sub sea vessels

It is reported that India largest private sector shipyard AGB Shipyard is looking at building sub sea vessels, which can be employed underwater for exploration and production activities.

A source said that the shipyard is currently in talks with a Middle East company for strategic technology tie up and as a packaged deal, it is also looking to secure contracts for the vessels. He added that the deal is expected to be finalized soon.

The source said that "With E&P spend increasing, the strategy to enter sub-sea vessels would work well for ABG and it would be going one step ahead of their offshore vessels expertise.”

He added that ABG's plan to enter this segment comes at a good time, given the shortage of suitable specialist vessels and robust global demand for sub sea intervention work in the oil and gas industry. At present, these vessels are sourced from yards in Norway, Japan and Korea.