By OGJ editors
HOUSTON, Jan. 27 -- India has approved the sale of Shipping Corp. of India's (SCI) 20% stake in the LNG transport company Greenfield Holding to Japan's Mitsui OSK Line (MOL).
Under terms of the agreement, Mitsui will pay $11 million for SCI's stake in Greenfield, along with some $1.6 million to repay outstanding SCI loans and accrued interest.
Mitsui currently has a 40% stake in Greenfield, while Oman holds the remaining 40%. It is still uncertain whether the two sides would split SCI's 20% stake between them.
Greenfield was formed to own and operate the 137,000 cu m Lakshmi LNG carrier to transport LNG from Oman to India's Dabhol power plant, promoted by former US energy trader, Enron Corp.
Partners in the Greenfield joint venture initially included MOL 60%, SCI 20%, and Enron affiliate Atlantic Commercial 20%.
Following Enron's collapse, Atlantic Commercial sold its 20% share to Oman, which picked up an additional 20% from MOL.
The Enron collapse also dented Lakshmi's chances of a long-term time charter with Dabhol, which was annulled after the time-charterer failed to accept the vessel on its delivery in November 2001.
Upon acquiring its 40% stake, Oman deployed Lakshmi on voyage charter with Oman LNG, its 51% subsidiary, which Royal Dutch/Shell operates.
