Srei Sells Its Stake in Quippo Pipelay Vessel to SapuraKencana of Malaysia

Srei Infrastructure‟s subsidiary, Quippo Oil and Gas Infrastructure Limited, has sold its investment in the derrick lay barge „Quippo Prakash‟ to SapuraKencana of Malaysia.

Quippo Oil and Gas Infrastructure, which is primarily in the business of owning and operating onshore drilling rigs, also held a substantial equity stake in the Quippo Prakash. The investment in the barge was made in 2008, at a time when the downturn in the offshore markets allowed Quippo Oil and Gas Infrastructure to negotiate favorable terms from shipyards. Outfitted in Singapore and commissioned in 2010, the state-of-art offshore construction support barge upon delivery was placed on term charter with a major offshore contractor in South East Asia, generating positive returns and cash-flows immediately.

Commenting on the transaction, Sunil Kanoria, Vice-Chairman, Srei Infrastructure Finance Limited, commented, “The offshore oil and gas construction market has shown a sharp upswing since the time Quippo Oil and Gas Infrastructure had invested in the vessel. Having invested when the market had bottomed out, Quippo Oil and Gas Infrastructure took advantage of the present buoyant conditions to exit its investment. Srei has been creating a portfolio of strategic investments over the past years and as and when there is an opportunity of encashing with a good return, it does so.”

Equipped with a 2000MT crane, the barge was designed to provide offshore construction support and underwater pipe-lay capability. With increasing levels of activity in the subsea construction market, the vessel had generated considerable interest amongst major offshore contractors.

The vessel was sold at an enterprise value of USD 122 million. Srei had a 38% stake in Quippo Prakash through Quippo Oil and Gas Infrastructure, a 100% subsidiary of Srei Infrastructure Finance Limited.

Press Release, October 05, 2012

Share this article

Follow Subsea World News

Events>

<< May 2017 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

UTC 2017

The subsea industry has, as all other parts of the oil & gas industry, been seriously rattled by the most severe downturn in the hydrocarbon energy era. However, the realization of what hit us and actions to be taken to sustain a healthy and profitable future is still on-going – unfortunately with thousands of colleagues paying the price by losing their job as one of the most severe consequences. At this time, there are signs that we have reached bottom in terms of most industry indicators, but few experts expect a sharp recovery. Many seem to believe that a slow recovery is what the industry needs in order to avoid an unsustainable capacity build-up, as seen in the period after the financial crisis. Considering the uncertainty of what the future will bring, this year’s UTC Program Committee have decided to challenge all of us to present ideas, experiences, technological innovations, business models and execution models for how to shape our subsea future and explain how and why subsea is the future.
UTC welcomes abstracts based on the topics listed below. If selected, please consider writing a paper in addition to the UTC presentation. From 2017, UTC papers will be published in an international database.

More info

read more >

EIC Connect Oil & Gas UAE 2017

This one-day event, focusing on the oil and gas sector, will explore opportunities in the Middle East whilst recognising the challenges that…

read more >

Decom Offshore 2017

Decom Offshore 2017 is expected to bring together a global audience of over 400 key representatives from the late life and decommissioning…

read more >

IMCA ROV SEMINAR

This seminar is designed to assist IMCA members in dealing with these, with a programme of technical and operational topics affecting…

read more >