Reliance extends $600m jetty contract deadline

Vol 17, PW 1 (08 Aug 13) Midstream & Downstream

Reliance has extended the commercial bid deadline in a $600m contract to construct a 4.2-km jetty at Jamnagar port from July 15 to August 16.

Three companies have passed Reliance’s rigorous technical evaluation: Larsen & Toubro, bidding with South Korea’s Samsung; Afcons, bidding with McDermott; and SapuraKecana Petroleum, from Malaysia, bidding alone. Leighton Welspun was originally interested, but pulled out, unhappy with changes Reliance wanted to make to the original project scope.

In a resounding vote of no-confidence on Indian shipyards, Reliance’s project scope states that only foreign construction yards will be considered for this job, expected to take 24 months from the Letter of Award (LoA). “Reliance is very quality conscious,” says a bidder.

“Three or four technical meetings have already taken place. L&T’s construction yard at Hazira was disqualified on technical grounds.

Only its Oman construction yard was considered. Mukesh Ambani (Reliance chairman) didn’t want L&T to bid.

He doesn’t have a good relationship with AM Naik (L&T chairman).” If it wins Afcons will use McDermott’s construction yard in Dubai, and SapuraKecana will use its own construction yard at Lumut port in Malaysia.