The Grand Bahama Shipyard is in discussions with oil companies to store and repair rigs, with Bahamas Petroleum Company (BPC) among its possible clients.
According to a top executive, the venture would offer further diversification to the already booming shipyard.
Reuben Byrd, senior vice president of operations at the shipyard, confirmed to Guardian Business that the East Beach facility would be designed to accept oil rigs for maintenance.
"We've had some inquiries," he said.
"So we're looking at moving into that sector. We are going through the audit process as part of a qualification. They check our safety programs and they check our procedures. They would store rigs here when they come in for repairs."
Byrd explained that British Petroleum and Shell are performing the audits, along with further inquiries from local oil explorers at BPC.
He said the rigs at the shipyard would not necessarily be bound for The Bahamas, but also other drilling hot spots, such as the Gulf of Mexico.
Grand Bahama is less than 250 kilometers from the U.S., making the top-notch facility ideal for the job. Meanwhile, BPC is poised to drill an exploratory well this time next year if it hopes to fulfill specific criteria embedded in its drilling license.
The shipyard executive told Guardian Business that going into the oil rig business is being seen as an effective avenue of diversification. He called the business "a really great opportunity that would enhance our business model".
At present, Byrd reported that the shipyard has seen a slight drop in profitability in the second quarter, "but not anything earth shattering". He said the docks remain full as the cruise industry and other vessels increasingly seek repairs.
Over the last three years, executives at the shipyard have reported major revenue increases, rising from $80 million in 2008 to $130 million in 2011. The site is capitalizing on its close proximity to the U.S. and a noticeable trend whereby cruise lines turn to repairs and renovations rather than purchasing new vessels.
On Saturday, the shipyard arranged for two, 40-tonne propellers to be shipped over to Italy on The Antonov 124-100, one of the largest cargo planes in the world.
Byrd said the facility was simply storing the giant propellers for the cruise industry. The job was only worth "a few thousand dollars", he added, but the real incentive is to help out the cruise industry and put its diverse business offerings on display.
The Grand Bahama Shipyard is also in the midst of a $4 million development of a North Beach facility to accommodate the demand.
"The expansion permitting is in place, but we haven't gone at it full bore yet," he told Guardian Business.
The shipyard currently employs 800 people, 300 of which are Bahamian.

Click here to read more at The Nassau Guardian