Thursday, February 21, 2008

Seaways to expand into offshore oil and gas biz

Hyderabad, Feb. 20 Hyderabad-based Seaways Shipping is firming up plans to exploit the growing opportunities in the offshore oil and gas business.

The Rs 460-crore company is looking at a joint venture with a foreign firm.

Talks are on with potential companies. Seaways plans to provide ancilliary services to the sector, said Capt Parvathaneni.V.K. Mohan, (Son of P.Upendra Ex.MP) Chairman and Managing Director.

India has exploited just about 18 per cent of its offshore potential and has huge business potential.

Looking ahead

Seaways is strengthening its cargo feeder services on both the East and West coast. By the end of the calender year 2008, it intends to have a total of 8 ships, each ranging in capacity from the smallest — 228 TEU (Twenty feet equivalent units) to the bigger 800-900 TEU capacity ones.

Plans are to increase the number of ships on the West Coast (two this year), to strengthen the domestic cargo base and provide better connectivity for mainline operations, Capt Mohan told.

With the Jawaharlal Nehru Port Trust (JNPT) as the hub, the mainline sees nearly 70 per cent of the domestic cargo through the West coast. The other two major ports — Mundra and Vallarpadam — need to be better connected in the near future.

The company has plans to expand operations to the Middle East and South East Asian countries with its own containers. Similarly, it would have own offices in Singapore, Bangkok, Dubai and Malaysia soon.

Capt Mohan said the company is expected to close the current financial year at Rs 750 crore. As part of the future plans it is planning to go for an IPO (initial public offering) in the third quarter of 2009.

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