Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine, said it will form a joint venture with Kakinada Seaports to establish and operate a marine and offshore facility in India.
Under the agreement, Sembmarine Kakinada Seaports (SKL) will develop the facility on the Indian east coast near Krishna-Godavari and Mahanadi basin area.
The Singapore-based firm says it expects the facility to be developed in three phases over three to five years with an investment of $375m.
Sembcorp, through Sembawang Shipyard, will hold a 19.9% share of the jpint venture’s initial investment of $50m with an option to increase it to 40%.
The aim of the project is to attract the Indian ships that sail to Singapore for repairing and vessel mending.
According to the company, Transocean Offshore International Ventures, India, a subsidiary of Transocean, US, will sign a favoured customer contract with SKL to use its facilities.