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Indian Oil Corporation (IOC), the nation's largest oil refiner, has unveiled plans to bolster India's energy security by venturing into the shipping business, particularly focusing on acquiring Very Large Crude Carriers (VLCCs). The move comes as part of IOC's strategy to hedge against market uncertainties and ensure a steady supply chain for crude oil. A VLCC, capable of transporting up to two million barrels of crude oil per trip, has become a crucial asset in the energy market. Currently, the market price for a second-hand VLCC stands at approximately $125 million. IOC aims to either purchase or lease these vessels for long tenures spanning 8-10 years, with a finalized deal expected within the next 6-8 months. The company emphasized its commitment to acquiring ships no more than five years old, underscoring its dedication to modern and efficient assets. For energy security of the nation and for hedging reasons, we will be getting into this business, an IOC representative revealed. In a significant development, IOC recently established IOC Global Capital Management IFSC Ltd, a wholly owned subsidiary, in Gujarat International Finance Tec-City (GIFT City), India's premier International Financial Services Centre (IFSC). This move signals IOC's foray into the finance domain, aimed at optimizing fund flow for IOC Group firms to bolster energy security and support the transition towards sustainable energy sources. In its initial phase, IOC's IFSC unit has embarked on negotiations with financial institutions to structure deals for acquiring or leasing VLCCs. The company seeks to overcome constraints in leasing ships for extended tenures, particularly exceeding five years, as mandated by certain government agencies. Acknowledging the tight market conditions in the new-building segment, with global yards fully booked for the next three years, IOC expressed a preference for second-hand VLCCs to expedite its entry into the shipping business. Highlighting the potential structure of the venture, an IOC representative explained, We will lease it to the IOC itself... the vessel will never be idle. Because your customer is already in place and secondly it is a business hedge for us. Furthermore, IOC is exploring options to own or lease barges to support its single point mooring (SPM) operations, aiming to streamline its logistics and enhance operational efficiency. As part of its strategic considerations, the IOC is evaluating the flag status of the VLCCs, considering both Indian and foreign flags. However, flying the Indian flag could confer advantages such as the right of first refusal (RoFR) during public tenders, aligning with government regulations. Additionally, IOC is in discussions with Indian companies to explore the possibility of forming joint ventures to enter the shipping business, albeit with a preference for government-owned partners due to regulatory considerations. While IOC initially considered venturing into LNG shipping, the company's immediate focus remains on acquiring VLCCs to strengthen its presence in the maritime domain. With these ambitious plans, the IOC aims to reinforce India's energy security while navigating the complexities of the global energy landscape.