Offshore service provider Dolphin Offshore Ltd moved a step closer towards the take off platform for its proposed Rs 400-crore greenfield shipyard project in Gujarat, with the company having received the Letter of Intent by the Gujarat Maritime Board for setting up the project at Jafrabad.

The project will be implemented in three phases.

The first phase will involve an investment of about Rs 60 crore, which will be used to set up a fabrication yard for Dolphin’s EPC contracts, shipbuilding yard with slipway, machinery shops and office block. This phase will commence immediately upon receipt of the necessary licences and clearances from the Government including environmental clearance, the officials said.

The second phase, involving an investment of Rs 70 crore, will commence after the shipbuilding activities begin and will include the construction of the necessary jetties and outfitting berths as well as additional infrastructure required. This phase is expected to cost Rs 70 crore.

The third phase is estimated to cost Rs 270 crore and will involve setting up of repair facilities for ship and offshore drilling units.

After completion of the three phases of construction, the shipyard will be capable of dry-docking jack-up rigs, apart from constructing bigger ships. In fact, no shipyard in India can currently service the giant jack-up rigs used for offshore oil exploration.

At present, oil exploration companies, including ONGC, are forced to tow their jack-up rigs all the way to the nearest shipyards in Dubai for servicing.

“It takes 14 days for the rig to reach Dubai shipyard and another 14 days to tow it back to India, which means a loss of 28 days of just travel time. Given the fact that the rigs at present command a daily hire rate of $2,00,000, you are talking about a loss of $5.6 million just to ferry the rig from India to Dubai and back,” an official said.