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Slowdown to Varun Shipping offshore fleet expansion plan

Slowdown to Varun Shipping offshore fleet expansion plan

Mumbai: Varun Shipping md Yudhishthir Khatau (pictured) has revealed that the company will be unable to reach its capital expenditure target of $400m for 2008/09 due to unavailability of vessels, reports Reuters. The firm had planned to buy at least four vessels in the offshore segment in 2008/09, Khatau had told the newswire in May. It has since acquired just one in January, which began operations in the North Sea today.

"We believe markets in certain sectors might still come down further but if we find good opportunities on modern vessels... in the resale market, then we would take a decision," he said in a telephone interview this morning. "We are evaluating it (capex for FY09) in the meantime. We might not do all of the $400 million if the opportunities are not good enough," he added.

"As far as our sectors are concerned - offshore, crude and gas - the rates are far more stable. Offshore still continues to be reasonably strong with continued activity in the North Sea," Khatau told Reuters over the telephone on Wednesday. Varun already has one anchor handling tug operating in the North Sea and another in Mozambique's Sassol.  [28/01/09]