IOC to Buy 10 Medium-Range Oil Tankers from Indian JV
OIL & GAS

IOC to Buy 10 Medium-Range Oil Tankers from Indian JV

Indian Oil Corporation (IOC) is expected to place an order for at least 10 medium-range oil tankers from a joint venture led by the Shipping Corporation of India (SCI), with the vessels to be constructed at an Indian shipyard, sources said.
As the world’s third-largest oil importer and consumer, India relies heavily on hired vessels to transport energy supplies. The government has been keen to secure energy supply lines, prompting IOC and other state-owned oil firms to explore building ships domestically, which would also generate employment.
Earlier proposals to establish a shipping company in India were delayed due to a lack of domestic shipbuilding expertise. The availability of cheaper Chinese-built vessels added to the hesitation, though the government emphasised the strategic importance of indigenously built ships.
IOC initially considered a three-way joint venture involving a foreign shipyard with vessel-building expertise and a shipping operator. The company has now opted to procure 10 Aframax tankers, with capacities between 80,000 and 120,000 deadweight tonnes, through a joint venture with SCI and an Indian shipyard, possibly Cochin Shipyard. Other oil companies may follow suit.
The order announcement is expected to coincide with Prime Minister Narendra Modi’s September 20 launch of India’s global shipbuilding bid from Bhavnagar, Gujarat. Announcements may include a revamped Ship Building Financial Assistance (SBFA) scheme and a Rs 25,000 crore Maritime Development Fund (MDF). A Rs 20,000 crore plan to set up shipbuilding clusters in Gujarat, Andhra Pradesh, Odisha, and Maharashtra is also under consideration.
Sources estimate Indian oil companies will need 112 crude carriers by 2040 to replace the ageing fleet, most of which are currently chartered from foreign firms. Over 85 per cent of the USD 100 billion spent by Indian companies on freight costs in recent years went to foreign vessels.
The first phase of the domestic shipbuilding programme will involve procuring 79 vessels, including 30 medium-range tankers. The plan aims to raise the share of locally built tankers in the fleet to 7 per cent by 2030 from 5 per cent currently, and to 70 per cent by 2047.
SCI will operate the domestic fleet, while state-owned oil companies will provide orders to Indian shipyards. International players, including South Korea’s HD Hyundai Heavy Industries and Samsung Heavy Industries, as well as Japan’s Mitsui OSK Line and Nippon Yusen KK (NYK Line), have expressed interest in partnering with Indian yards such as Cochin Shipyard.

Indian Oil Corporation (IOC) is expected to place an order for at least 10 medium-range oil tankers from a joint venture led by the Shipping Corporation of India (SCI), with the vessels to be constructed at an Indian shipyard, sources said.As the world’s third-largest oil importer and consumer, India relies heavily on hired vessels to transport energy supplies. The government has been keen to secure energy supply lines, prompting IOC and other state-owned oil firms to explore building ships domestically, which would also generate employment.Earlier proposals to establish a shipping company in India were delayed due to a lack of domestic shipbuilding expertise. The availability of cheaper Chinese-built vessels added to the hesitation, though the government emphasised the strategic importance of indigenously built ships.IOC initially considered a three-way joint venture involving a foreign shipyard with vessel-building expertise and a shipping operator. The company has now opted to procure 10 Aframax tankers, with capacities between 80,000 and 120,000 deadweight tonnes, through a joint venture with SCI and an Indian shipyard, possibly Cochin Shipyard. Other oil companies may follow suit.The order announcement is expected to coincide with Prime Minister Narendra Modi’s September 20 launch of India’s global shipbuilding bid from Bhavnagar, Gujarat. Announcements may include a revamped Ship Building Financial Assistance (SBFA) scheme and a Rs 25,000 crore Maritime Development Fund (MDF). A Rs 20,000 crore plan to set up shipbuilding clusters in Gujarat, Andhra Pradesh, Odisha, and Maharashtra is also under consideration.Sources estimate Indian oil companies will need 112 crude carriers by 2040 to replace the ageing fleet, most of which are currently chartered from foreign firms. Over 85 per cent of the USD 100 billion spent by Indian companies on freight costs in recent years went to foreign vessels.The first phase of the domestic shipbuilding programme will involve procuring 79 vessels, including 30 medium-range tankers. The plan aims to raise the share of locally built tankers in the fleet to 7 per cent by 2030 from 5 per cent currently, and to 70 per cent by 2047.SCI will operate the domestic fleet, while state-owned oil companies will provide orders to Indian shipyards. International players, including South Korea’s HD Hyundai Heavy Industries and Samsung Heavy Industries, as well as Japan’s Mitsui OSK Line and Nippon Yusen KK (NYK Line), have expressed interest in partnering with Indian yards such as Cochin Shipyard.

Next Story
Infrastructure Energy

Rajesh Power Secures 65 MW BESS Project in Gujarat

Rajesh Power Services has recently secured a 65 MW / 130 MWh standalone Battery Energy Storage System (BESS) project in Gujarat, marking its entry into utility-scale energy storage. The company received a Letter of Intent from Gujarat Urja Vikas Nigam for the project, which will be developed at Virpore under a tariff-based competitive bidding mechanism supported by Viability Gap Funding through the Power System Development Fund.The project is expected to be executed within 18 months from the signing of the Battery Energy Storage Purchase Agreement. With the ability to supply 65 MW of power for..

Next Story
Infrastructure Energy

ONGC Forms JV with MOL for Ethane Shipping Operations

Oil and Natural Gas Corporation (Oil and Natural Gas Corporation) has recently entered the ethane shipping segment through joint venture agreements with M/s Mitsui O.S.K. Lines Ltd (Mitsui O.S.K. Lines), Japan. The agreements involve equity participation in two joint venture entities—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—registered at GIFT City, Gandhinagar.Under the arrangement, ONGC will subscribe to 2,00,000 equity shares of Rs 100 each in both entities, resulting in a 50 per cent equity holding in each joint venture, with the remaining stake ..

Next Story
Infrastructure Energy

Waaree Energy Storage Raises Rs 10.03 Billio for 20 GWh Plant

Waaree Energy Storage Solutions Private, a subsidiary of Waaree Energies, has recently completed a strategic fund raise of around Rs 10.03 billion from a group of strategic investors, including family offices, high-net-worth individuals and institutional backers. The funding strengthens the company’s position in India’s rapidly expanding energy storage ecosystem.The capital raise forms part of an announced capital expenditure programme of nearly Rs 100 billion for setting up a 20 GWh advanced lithium-ion cell and battery pack manufacturing facility. The plant will manufacture high-performa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App