02-19-2008, 12:51 PM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>'Acceptance of Indian vessels in intâl market is growingâ'</b>
18 Feb, 2008
Navpreet Singh, joint managing director
<b>What is the extent of Dolphin Offshoreâs involvement in the offshore sector ?</b>
We are basically in turnkey EPC type contract business and are concentrating on work that needs to be done underwater, above water and on water - the three dimensions called integrated services.
We undertake work of revamping, modification and integration of the infrastructure for oil and gas market.
<b>How niche a segment is revamping, modification etc.?</b>
In modification, we are basically convert platforms which are currently controlling production from 2 to 4 wells by expanding the production capacity to 6 or 8 wells.
In other words, we are looking to increasing the capacity of the platforms. In India, not many local companies are involved. What many in the field do is to secure the contract and sub-contract to someone else. I find we are the only ones who provide integrated services where we can do the entire operation on a turnkey basis.
<b>Between a jack-up rig and semi-submersible rig which do you think is gaining prominence?</b>
The water depth in which you operate determines the choice. If you have a 300 foot leg length of jack up rig you cannot work in 350 metres of water. On the other hand, a semi-submersible rig being a vessel that actually floats on water at all times is more useful.
It is either anchored into position or has a dynamic positioning system to maintain a fixed position to enable the vessel to undertake drilling. So these can be used in water depths where the jack-up rig cannot be used.
<b>Do you operate world wide and do you also undertake pipe laying operations in the offshore sector?</b>
We neither operate overseas nor undertake pipe laying operations. We restrict ourselves to the Indian offshore and have currently no focus on overseas operations. However, we do provide lot of support services to the pipe laying operations undertaken by other companies.
<b>I understand that of late a diver's salary has been spiralling steeply upwards?</b>
Yes. Divers salaries are touching international standards. We are paying our divers between US $ 300 to $ 500 a day. For instance, what is being paid to our divers now is twice what we were paying them last year.
There is however, a greater demand for Indian divers now.
<b>Do you supply divers or they are only for in-house operations?</b>
We are not in the business of 'body' shopping - providing divers. We have around 60 divers working offshore right now.
We undertake more and more projects, either turnkey or otherwise, where we provide and carry out the work and handle all the management ourselves.
Sometimes we provide a diving system - a vessel or divers to our clients according to their requirements. So we work both ways.
<b>As there are no institutes for divers, do you have any plans to start one?</b>
India has no such institute as yet. Predominantly the UK and Australia have become popular destination for these courses.
We have been pursuing with the government to set up an institute, but it is not going to be easy and is very expensive.
<b>What are your diversification plans?</b>
We are in the process of setting up a shipyard for which we have been granted permission by the Gujarat Maritime Board.
It will be set up in Jafrabad. In terms of investment it will involve Rs 400 crore and will be designed to build vessels of 100 to 120 metres in length mostly for the offshore oil & gas and coastal trade.
<b>Are you banking more on overseas orders than those from India?</b>
However big one may think the Indian oil and gas market is, it is actually much smaller in size. For example, the Middle East market is 10 to 12 times bigger than the Indian one.
Bharati Shipyard and other Indian shipyards are actually geared for the offshore sector. Therefore, the acceptance of Indian vessels in international market is growing.
Shipbuilding per se is not new to us since we are already doing a fair amount of such work and we believe this will provide us with a big opportunity to undertake all our fabrication work too. We also want to concentrate on developing a repair facility for offshore jack up and the OSVs market.<!--QuoteEnd--><!--QuoteEEnd-->
18 Feb, 2008
Navpreet Singh, joint managing director
<b>What is the extent of Dolphin Offshoreâs involvement in the offshore sector ?</b>
We are basically in turnkey EPC type contract business and are concentrating on work that needs to be done underwater, above water and on water - the three dimensions called integrated services.
We undertake work of revamping, modification and integration of the infrastructure for oil and gas market.
<b>How niche a segment is revamping, modification etc.?</b>
In modification, we are basically convert platforms which are currently controlling production from 2 to 4 wells by expanding the production capacity to 6 or 8 wells.
In other words, we are looking to increasing the capacity of the platforms. In India, not many local companies are involved. What many in the field do is to secure the contract and sub-contract to someone else. I find we are the only ones who provide integrated services where we can do the entire operation on a turnkey basis.
<b>Between a jack-up rig and semi-submersible rig which do you think is gaining prominence?</b>
The water depth in which you operate determines the choice. If you have a 300 foot leg length of jack up rig you cannot work in 350 metres of water. On the other hand, a semi-submersible rig being a vessel that actually floats on water at all times is more useful.
It is either anchored into position or has a dynamic positioning system to maintain a fixed position to enable the vessel to undertake drilling. So these can be used in water depths where the jack-up rig cannot be used.
<b>Do you operate world wide and do you also undertake pipe laying operations in the offshore sector?</b>
We neither operate overseas nor undertake pipe laying operations. We restrict ourselves to the Indian offshore and have currently no focus on overseas operations. However, we do provide lot of support services to the pipe laying operations undertaken by other companies.
<b>I understand that of late a diver's salary has been spiralling steeply upwards?</b>
Yes. Divers salaries are touching international standards. We are paying our divers between US $ 300 to $ 500 a day. For instance, what is being paid to our divers now is twice what we were paying them last year.
There is however, a greater demand for Indian divers now.
<b>Do you supply divers or they are only for in-house operations?</b>
We are not in the business of 'body' shopping - providing divers. We have around 60 divers working offshore right now.
We undertake more and more projects, either turnkey or otherwise, where we provide and carry out the work and handle all the management ourselves.
Sometimes we provide a diving system - a vessel or divers to our clients according to their requirements. So we work both ways.
<b>As there are no institutes for divers, do you have any plans to start one?</b>
India has no such institute as yet. Predominantly the UK and Australia have become popular destination for these courses.
We have been pursuing with the government to set up an institute, but it is not going to be easy and is very expensive.
<b>What are your diversification plans?</b>
We are in the process of setting up a shipyard for which we have been granted permission by the Gujarat Maritime Board.
It will be set up in Jafrabad. In terms of investment it will involve Rs 400 crore and will be designed to build vessels of 100 to 120 metres in length mostly for the offshore oil & gas and coastal trade.
<b>Are you banking more on overseas orders than those from India?</b>
However big one may think the Indian oil and gas market is, it is actually much smaller in size. For example, the Middle East market is 10 to 12 times bigger than the Indian one.
Bharati Shipyard and other Indian shipyards are actually geared for the offshore sector. Therefore, the acceptance of Indian vessels in international market is growing.
Shipbuilding per se is not new to us since we are already doing a fair amount of such work and we believe this will provide us with a big opportunity to undertake all our fabrication work too. We also want to concentrate on developing a repair facility for offshore jack up and the OSVs market.<!--QuoteEnd--><!--QuoteEEnd-->