Leighton's silly ONGC bid

Vol 15, PW 24 (14 Jun 12) News in Brief
     

As we predicted Leighton Welspun has emerged lowest bidder for ONGC’s Mumbai High Pipeline Replacement Project-3 (PRP-3).

But nobody imagined Leighton would go so low! When ONGC opened price bids on May 30 it must have been overjoyed to see Leighton’s rock-bottom quote of $252.85m - half its internal estimate of $509m! Hyundai Heavy Industries partnering Great Offshore came second with $299.6m; Valentine Maritime was next with $319m; Punj Lloyd followed with $338m; and Swiber Offshore was last with a $399m bid. “How can Leighton recover its costs with this price” asks an incredulous source.

“Hyundai’s quote is more realistic.” ONGC wants the selected contractor to modify 54 wellhead platforms and replace 160.66-km of pipeline at the offshore Mumbai High, Neelam and Heera fields.

It wants 400 Mumbai High valves and 61 Neelam valves replaced and the project completed by May 15, 2014. Nine consortia submitted bids on February 7.