ONGC to re-tender $180m subsea facilities project

Vol 17, PW 18 (24 Apr 14) Exploration & Production
     

Bad news for companies who sent in bids last November for ONGC’s $180m project to lay pipelines and install subsea facilities at the Bassein gasfield off Mumbai.

PETROWATCH learns ONGC will scrap and re-issue the tender within a month due to significant modifications in the scope of work. An industry source tells us ONGC has cut 60-km of pipeline from the 98-km originally proposed in the tender.

Instead ONGC plans to use two established Tapti process platforms and subsea spur lines, which will be abandoned in June 2015 by the PMT consortium of BG, Reliance and ONGC. The Tapti spur lines in turn link to ONGC pipelines running from South Bassein to the Hazira gas processing terminal.

"ONGC has informally told us a large segment of Bassein pipeline is not required,” says our source. “It will issue a fresh limited tender to companies who sent in the earlier bids.

” He explains that ONGC's internal rules dictate it must issue a fresh tender if there are important changes to the scope of work. ONGC received bids by November 22 from Essar Projects, Larsen & Toubro, Punj Lloyd, Swiber, Great Offshore partnering Hyundai Heavy Industries and Supreme Offshore partnering Valentine Maritime.

It previously planned to award the contract by January this year. In a separate tender to construct the BCPA-3 process platform and allied facilities at Bassein, ONGC has again extended the bid deadline from April 10 to May 12.