Sustainability

Company at a glanceCompany at a glanceEssar Shipping is among the largest shipping companies in India providing global transportation logistics solutions. It providesend-to-end sea transportation, logistics and oilfield services, including shipping, lighterage services, logistics services anddispatch of finished products to onshore and offshore drilling services, and offshore construction services.The company has structured its operations under three businesses:• Sea Transportation• Oilfield Services• Logistics ServicesSea transportation businessThe company's sea transportation business offers integrated transportation management and logistics solutions to global oilmajors and the energy, steel and power industries. It provides crude oil transportation, transportation management servicesand integrated dry bulk and finished goods transportation services.The current fleet strength of 26 ships includes two double-hull VLCCs, six capesize vessels, two modern supramax vessels, twohandysize bulk carriers, 10 mini bulk carriers and four tugs with aggregate capacity of 1.6 Mn DWT.Six mini-capesize vessels, being built at the STX Shipyard in Dalian (China), and six supramax vessels, being built at ABGShipyard, Dahej (Gujarat), are due to join the fleet shortly. With the addition of these vessels, the company's total tonnage isexpected to rise to 2.6 Mn DWT. The new building vessels will be acquired on bare boat charter basis.The company adopts the policy of entering into long-term contracts with reputed global oil and industrial majors, therebyensuring assured cash flows and long-term profitability of the company, as well as hedging the company against spot marketvolatility and industrial cyclicality. Most of the company's vessels have committed cargo contracts well into the next decade,with committed cargo contracts worth USD 3.8 billion to be serviced over the next 15 years.Oilfield servicesEssar Shipping, through its subsidiaries Essar Oilfield Services Ltd (EOSL) and Essar Oilfield Services (India) Ltd. (EOSIL), providesquality onshore and offshore drilling services to international clients. The company owns and operates a fleet of 13 rigs, whichincludes one offshore semi-submersible rig, Essar Wildcat, and 12 onshore rigs. Essar Wildcat is a third-generation semisubmersibleoffshore rig, which is rated to work in water depths up to 1,300 feet and has a drilling capacity of 25,000 feet andcan be upgraded for deeper waters.The company's contracted revenue is based on long-term contracts with domestic and international clientele, catered to by adiversified mix of assets. The onshore rig fleet comprises seven mobile rigs and five land rigs; with capacities varying from 250HP to 2000 HP.Essar Shipping has entered into a contract with ABG Shipyard, Dahej (Gujarat), for the construction of two new jack-up rigs. TheJU-2000A rigs are state-of-the-art rigs and have been designed by Freide & Goldman Limited, USA, one of the world's leadingdesigners of mobile offshore drilling and production units in the world.The rigs will be built in accordance with the stringent rules and standards set by the American Bureau of Shipping (ABS) relatingto safety of life and property at sea. The rigs are designed to operate round the year in regions like the Gulf of Mexico and also inharsh environments such as the North Sea.These rigs will have the capacity to operate at depths upto 350 feet, drill into the seabed upto 30,000 feet and be able towithstand harsh conditions. The main features of the design include increased storm criteria, extended cantilever reach, alightweight and efficient drilling package.05