ONGC tender for 19 offshore fields in December

Vol 8, PW 18 (01 Dec 04) Exploration & Production
     

ONGC is floating a global tender this month for the development of 19 marginal fields offshore Mumbai.

The tender should be out by the 15th or 16th December and will stay open for a month, reveals a source. ONGC expects more than 40 companies to participate and will hold a bidders conference in the fortnight after the tender closes.

Interested bidders must submit techno-commercial and price bids in March next year. ONGC will open the techno-commercial bids first and shortlist bidders against the Bid Evaluation Criteria.

Only price bids of shortlisted bidders will be opened. ONGC plans to award the contracts within a week of opening price bids.

We are targeting the end of March for award of the contracts, we learn. ONGC is about three months behind its own schedule in awarding the offshore marginal field contracts.

The delay is because we are doing this for the first time and have no similar case histories from anywhere else in the world. ONGC will retain ownership of the 19 offshore fields and of the oil and gas produced.

Selected contractors will receive a service fee as payment for developing and producing the field. As with the onshore marginal fields, the biddable item in the offshore marginal fields tender is the percentage of the oil price that the bidder offers ONGC.

What the contractor retains will be the service fee. All the offshore marginal fields except one gasfield contain oil.

ONGC estimates in-place oil reserves in these 18 fields at between 60m and 70m tonnes. If recoverable reserves in the gasfield are large, the selected contractor can generate power and sell it to ONGC at a biddable price benchmarked to that of domestic power producers.

In November ONGC finally approved the Bid Evaluation Criteria.