State-run refiners in talks with South Korean majors to set up shipyard in Andhra: Report

Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum Corp. and the Shipping Corp. of India (SCI) began evaluating joint procurement of crude and gas carriers earlier this year. (Representative image)

India’s state-run oil refiners have reportedly opened preliminary discussions with three of South Korea’s largest shipbuilders to assess the feasibility of establishing a major shipbuilding yard in India, people aware of the talks said.

The proposed facility is likely to come up in Andhra Pradesh, though deliberations remain at an early stage, according to sources cited in a report by the Mint.

Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum Corp. and the Shipping Corp. of India (SCI) began evaluating joint procurement of crude and gas carriers earlier this year.

Moneycontrol could not independently verify the report.

According to officials cited in the report, the companies are now exploring a deeper collaboration that would see them take equity positions in a new yard to be developed in partnership with HD Hyundai, Samsung Heavy Industries and Hanwha Ocean. In exchange for the same, the Indian entities would commit to ordering vessels from the facility, providing long-term demand to support the project’s economics. Investment estimates vary widely, from Rs 1,500 crore for a limited set-up to as high as Rs 15,000 crore for a full-fledged yard.

Notably, India, one of the world’s largest energy importers, depends overwhelmingly on foreign ships to transport crude oil and LNG.

The Centre's assessments suggest state-run refiners will require about 112 vessels over the next decade, including nearly 60 tankers and gas carriers in the next five years, with a total capital outlay projected at up to Rs 7.15 trillion, it has been further learnt from the report.

HD Hyundai, states the report, has confirmed that it is exploring cooperation with Indian partners but said no deal has been finalised.

The discussions follow a mid-November visit by an Indian delegation to Hyundai’s shipyards, where maritime manufacturing was a key agenda point. The potential venture aligns with India’s broader push to expand its minimal share of global shipbuilding under the Maritime India Vision 2030 and 2047 programmes.