Ranco’s Integrated Port-cum-SEZ will harness Upstream Servicing opportunities
The new Port-cum-Special Economic Zone project in Gujarat on the West coast of India will bring in vibrancy in the Indian oil and gas offshore sector
Ranco’s Integrated Port-cum-SEZ, set to take shape on the Gujarat coast is touted to create a sea-change in the upstream E & P operations on the Indian offshore. This unique venture being put up by Mumbai-based Ranco Energy and Projects Pvt. Ltd., (REPPL, part of Ranco Energy Group) will focus on the oil and gas operations mainly in the offshore segment. According to sources a lot of interest has already got generated among oil majors, offshore companies and other potential EPC contractors wanting to set up their facilities in the SEZ.
Ranco Energy Group had signed two MoUs during the Vibrant Gujarat Summit 2013. One was with the Gujarat Maritime Board (GMB) and another with GICC (under GIDB) for developing an Integrated Port-Cum-SEZ Project (IPSEZ) and Cold Storage & Warehousing Projects (CS&W), respectively in Gujarat. The IPSEZ project for the Energy, Mining & Infrastructure (EMI) sectors will serve as dedicated supply base for heavy equipment and pre–fabricated structures that are to be imported for execution of mega–EMI projects. A part of the port infrastructure will also is dedicated to facilitate imports & trans-shipment of coal for satisfying the requirements of power generation and steel making sectors.
Rajesh Sonpal, Managing Director of REPPL pointed out, “An overwhelming majority of the capabilities in the Indian upstream offshore are sourced internationally. Again, if you look at Jebel Ali, most of the workforce is Indian. If these professionals started to operate at our SEZ and have all the fabrication done at the SEZ, the cost of manufacturing would be less than half of what it costs to undertake at Jebel Ali or other such dedicated shore-based SEZ facilities’ in the Arabian Sea - Indian Ocean Rim nations. As we will also be bringing in a lot of the manufacturing capabilities along with the designing and the software support and after combining all this and then adding the cost of land the cost for manufacturing will come down by almost 40 per cent of what it takes to manufacture in other comparable locations.”
He explains that here is the opportunity to harness the advantages to India’s benefit. He also pointed out that in the NELP regime of awarding oil & gas contracts by Government of India, some International oil majors did not participate in the tender because of technical, regulatory & economic environment and criteria not meeting global aspirations of these majors. “Now is the time to change the mindset as there is a realization among policy makers and other stakeholders in India that India has a bright future if we are able to harness the full potential of the resources available,” Mr. Sonpal said. “There are winds of change in the government thinking since it has become evident that India and the indigenous engineering-based E&P services industry catering to servicing, supplying and supporting the country’s upstream E&P sector, would miss out on billions of dollars in investments in the upstream servicing business if we don’t build a required infrastructure to facilitate the same.”
With regards Ranco’s Integrated SEZ-cum-Port he mentioned, “Our business is not to import commodities or resources. We only want to build & operate infrastructure to cater and serve the needs of the upstream sector and the first step to achieve this is only possible by providing a most modern world-class shore based facility with an integrated port. We are not getting into multi-modal commodities like fertilizer, potash, etc. We just want to be an offshore infrastructure operator and anything related to global procurement, fabrication that can be brought in and provided to the local players to improve competitiveness and efficiencies of the local upstream E&P operators.”
The company proposes to attract manufacturers of equipment, tools and inputs, for EMI sectors, for setting up their units. The focus is on making Gujarat and India a hub and a one–stop shop for manufacturing in oil & gas sector in particular and EMI sector in general.