Watch out for McDermott at MHSRD-III
Houston-based McDermott International could pull off a surprise win in ONGC’s tender to revamp and upgrade ageing facilities at the offshore Mumbai High South field (MHSRD-III).
ONGC wants bids in by March 16 for this $900m re-development project, earlier under threat because of falling oil prices. Among bidders will be L&T, Swiber, AFCONS and McDermott.
Some say the battle is between L&T and Swiber but McDermott has also bid aggressively for ONGC offshore EPC projects since the government abolished 'price preference' for Indian companies. “L&T has yards and barges and so does Swiber,” we hear.
“AFCONS has neither so must tie-up with a partner. But this will reduce its ability to offer a good price and ONGC is under pressure to cut costs.
” Some expect ONGC to postpone the deadline as it issued clarifications 10 days ago. But a senior ONGC source tells us: “For now the deadline is March 16.
” ONGC wants three new platforms and 114-km of subsea pipelines by May 2016.