NPCC wins ONGC contract for LEWPP-3 project

Vol 19, PW 26 (08 Sep 16) Exploration & Production
     

After months of suspense and uncertainty over whether to disqualify Swiber and a Chinese bidder, ONGC has finally opened price bids for a major offshore platform replacement job.

Abu Dhabi-based National Petroleum Construction Corporation (NPCC) has emerged the winner. This report learns ONGC opened bids at 6pm on August 26 for the Life Extension Well Platform Project-3 (LEWPP-3) after it completed evaluating a third round of clarifications received on August 1 from companies who sent in bids by the June 22 deadline.

NPCC bid lowest with $141.71m while Malaysian company SapuraKencana quoted $147.37m; L&T quoted $166.67m. All prices include Service Tax.

"Yes we have won," confirms a NPCC source. "This is a much needed project for us in these bad market conditions.

As soon as we are awarded the contract, we'll start work. We've been preparing for it at our Mumbai office and are ready to begin work." Still unclear is whether ONGC did eventually disqualify Swiber which has been facing financial difficulties or a subsidiary of China-owned China National Offshore Oil Corporation.

ONGC wanted to exclude the Chinese company in retaliation for Beijing's opposition to India's entry into the Nuclear Supplier's Group in June. China National Offshore Oil Corporation had approached ONGC's Independent External Monitors to overturn its expected exclusion but was unsuccessful.