Offshore player Greatship India is betting big on the subsea support services to drive its next leg of growth.
Foraying to become a service provider in the specialised sector of underwater support services for the oil and gas exploration and production market, Greatship eyes the segment to grow as much as a third of company’s business by 2013.
The focus now is on building capabilities with immediate deployment of 4 vessels for projects in Brazil and Australia. Orders for 5 more specialised ships worth $140 million have being placed and be a one stop shop for offshore services from surveys to inspection, maintenance and repair.
A Greatship India spokesperson said: “Over the next two years, however, we may have about 6-9 vessels dedicated to this area, depending upon the order book we build up. All our new constructions are capable of offering subsea solutions.”
With offices in Singapore, Perth and Mumbai, Greatship is eyeing to explore the India, South East Asia and Australian offshore markets to begin with.
Global exploration and production spend is increasing, which in turn is pushing the demand for specialsed support services. Estimates suggest $3 billion opportunity in next 3 years for shallow water market alone and analysts feel Greatship’s strategy to be a complete service provider to complement its existing operations.
“Markets are growing as well as demand for newer assets. Greatship’s new assets would be able to get good rates,” said Jehangir, analyst at ICICI Securities.
Analysts add if Greatship India is successful in launching its initial public offering this year, which is currently put on hold owing to the volatile markets, 2013 could be a good year for investors as Greatship could monetise well from its business as most vessels would join the fleet by then.
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Source: Profit, Feb. 8, 2011