Sical Logistics wins ONGC bid for 5th time

Sical Logistics Ltd has informed BSE that the Company has won the Operations and
Maintenance (O&M) bid for operating 17 Samudrika category vessels for ONGC for the fifth time. This is an important win for the Company as it comes in time with the announcement of the restructuring of the Company and reiterates the Company's dominance over the offshore logistics sector.

The Company has been one of the key agencies managing a large number of ONGC vessels operating off the Mumbai coast and serving Bombay High. Under the last contract tenure the Company had operated and managed 15 vessels for ONOC. The life of the new contract is for a duration of three years, which is extendable by two six month periods.

The technical management of these vessels consists of providing competent, experienced manpower, carrying out planned maintenance of all equipment and machineries onboard, rendering all repair activities and timely drydocking. It also includes import and supply of spares, compliance of all relevant international / local maritime rules and regulations, maintenance of INTERNATIONAL SAFETY MANAGEMENT and carrying out all required surveys / audits as required by the Classification Society or the Mercantile Marine Department.

The Company has fully qualified and well experienced Seafarers in its team along with five Master Mariners and five Marine Chief engineers, who are dedicated to the effective execution of this project and to ensure the operational availability of these vessels.

Mr. Ashwin C Muthiah, Chairman of the Company said, "We are very pleased with the opportunity to continue our relationship with a leading organization like ONGC. Our team will endeavor to ensure that our services are above par and that there is visible value add from Sical's end by ensuring uptime and other benchmark references".

"This contract combined with our PSV Sical Torino, which is successfully deployed with Peterson Oil in the North Sea, will make offshore logistics contribute at least 30% of our revenues for FY 2008. We will consistently evaluate the expansion of our fleet through the acquisition of new-built vessel assets that have culling edge technology and are in demand because of their capabilities across a global customer base".

The tender notification process attracted a number of Companies. After thorough technical evaluation of the participating Company's credentials and capabilities, ONGC invited the Company and two other Companies to participate in the Price - Bid opening. In the Price Bid stage, the Company was awarded the Samudrika series of Offshore Vessels by virtue of being the lowest in the category.

The core functions of these ships involve conveyance of men / material, from shore to offshore assets / between offshore assets, render fire fighting support to offshore assets, provide emergency assistance, effect rescue operations and carry out anchor handling jobs for offshore assets. Some of the other activities carried out are shifting and relocating of offshore assets, conducting hydrographic surveys, supply of food and provisions in bulk to various offshore assets and assistance in diving activities.