India's ambitious drive to reduce dependence on foreign
hydrocarbon imports is expected to spur almost US$30 billion of
exploration and production investments including in the offshore
sector. An increase in offshore exploration activities usually
results in increased work opportunities for offshore support
vessels (OSVs). However, the cabotage policy in
India means that the odds are stacked against foreign OSV owners
winning tenders. To improve their odds in the tender process,
foreign OSV owners have to take certain measures including setting
up an Indian entity to assume ownership of the relevant vessel and
fly the Indian flag.
Introduction While demand for hydrocarbons in
the world's biggest economies is generally weak, India, fueled
by relatively robust economic growth, is set for a rapid, sustained
trajectory in energy demand.1 In 2015, India consumed an
average of 4.1 million barrels per day (mb/d) of crude oil,
overtaking Japan as the world's third largest
