Oil and Natural Gas Corp has transferred the operations and maintenance of its three multi-support vessels, Samudra Suraksha, Samudra Sevak and Samudra Prabha, to Shipping Corporation of India.

The three vessels have been transferred on a cost-plus basis for a year. The corporation plans to review its decision within three months.

"This period can be extended further if the arrangement is successful. A review shall be carried out by ONGC after three months," sources said.

An ONGC spokesman confirmed the development. "Instead of giving it to end private contractors we have decided to transfer the O&M services of these MSVs to SCI," the spokesman said. A senior SCI official too confirmed the move but did not divulge details.

ONGC had taken over the three vessels in early March from its contractors, Ganesh Benzoplast and Ganesh Anhydride.

The vessels were taken over as ONGC's divers and technical support staff struck work as they did not receive their wages.

Sources claim that "there was a mismanagement of vessels by the two contractors which resulted in a stoppage of work. This lead to ONGC losing close to Rs 69 crore."

Earlier, ONGC had been debating over forming a joint venture for its offshore floating services.

The deliberations proposed that the joint venture will take over the entire offshore logistic operations such as fire-fighting, underwater repairs and maintenance activities from the corporation.

ONGC has over 50 offshore supply vessels at its disposal. These OSVs are either owned by ONGC or hired for various offshore activities such as cargo handling, maintenance of its rigs, firefighting as well as for carrying out seismic operations.