Sembawang Shipyard on Monday said it has doubled shareholding stake in Sembmarine Kakinada Ltd (SKL) to 40 per cent and extended technical management and services agreement to 10 years from the existing five years.
Earlier, Sembawang held 19.9 per cent stake in SKL, a joint venture with Kakinada Seaports Ltd.
The increased shareholding would make Sembawang the single largest stakeholder in SKL, which has initial investment of USD 50 million after the joint venture was set up in November 2009, parent of the Singapore shipyard, SembCorp Marine said on Monday.
The Technical Management & Services Agreement to operate and manage SKL would also be extended to 10 years from the current five years.
Sembcorp said SKL is part of its strategy to establish and grow a hub in India to cater to the growing needs of its customers operating in India and South Asia.
SKL is an integrated marine and offshore facility strategically located in the East Coast of India, one of the world’s key oil and gas exploration areas.
Located between Vishakhapatnam and Chennai Port, the shipyard is well-placed to cater to offshore drilling units and merchant vessels trading or operating along the eastern coast of India, Sembcorp said.
Sembawang Managing Sirector Ong Poh Kwee said, “SKL is well-positioned to capitalise on the huge development and long—term growth potential of the offshore industry in India and South Asia.
“Through our increased stakeholding and long-term commitment, SKL will be able to leverage on the capabilities and expertise of Sembcorp Marine and in particular Sembawang Shipyard for sustainable growth“.
“We are confident that SKL is on track to become a one-stop integrated offshore service facility by the end of 2012, catering to the growing needs of our customers operating in India and South Asia.
SKL would be developed in three phases to offer ship owners and offshore operators a one-stop integrated offshore service facility for the repairs and servicing of offshore vessels and ships, newbuildings, oil and gas riser/equipment repairs as well as platforms and modules fabrication by the end of 2012,” he added.
Construction of the first phase of SKL’s development is well underway and completed facilities include blasting and painting shops, specialised Offshore Equipment Service Shops for riser and tubulars repairs, mechanical & electrical, piping & outfitting and multi-purpose workshops as well as a 630-metre repair pier.
In December 2010, SKL completed the repairs for Aban II, a jack-up rig owned by Aban Offshore Ltd, India.
Sembcorp said SKL would be ready to undertake full docking and repair works by the first half of 2012 when its 15,000-ton lifting capacity floating dock is commissioned.
SKL’s shops and ground are also geared up for fabrication and shipbuilding, it said.