Kuala Lumpur: India’s 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 favourable 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." [11/10/12]