L&T bids lowest for Mumbai High South

Vol 11, PW 20 (21 Feb 08) News in Brief

Larsen & Toubro has emerged lowest bidder for a section of ONGC’s ongoing project to redevelop the Mumbai High South field.

When bids were opened on February 11 for a three-well platform in the Mumbai High South Redevelopment Phase-II, L&T bid $314m, followed by Ramunia at $321m. Punj Lloyd bid $390m.

When confirmed, L&T will have, “single point responsibility for engineering, procurement, construction and installation of the three platforms, 58-km of sub-sea pipelines and 22-km of sub-sea cablesâ€‌. ONGC wants the work completed by April 2009.

Observers are surprised at the wide gap between Punj Lloyd’s bid and that of L&T and Ramunia. Speculation is that Punj Lloyd is deliberately quoting high to try to recoup losses, if it gets an ONGC contract, sustained in ONGC’s ongoing Heera field redevelopment project in the Mumbai Offshore.

“Punj Lloyd have burnt their fingers badly at Heera,â€‌ we are told. “The topsides are not yet ready.