Assam revamp project attracts 15 potential bidders

Vol 11, PW 24 (17 Apr 08) Exploration & Production

Larsen & Toubro, Indian Oiltanking, Punj Lloyd and AFCONS are among 15 companies competing to win ONGC’s long-awaited and ambitious project to revamp decaying facilities and pipelines at its Assam fields.

Following a pre-bid conference on February 20, the deadline for bids has been set for April 30 – the end of this month. Bids are expected to exceed ONGC’s original estimate of Rs2300cr ($575m), “as changes have taken place to the original scope of work.

â€‌ The project must be completed within three years from the date of the Letter of Intent (LoI). ONGC’s Assam facilities are over 30 years old and have never been revamped because of trouble from separatist militants, who routinely blow up crude oil pipelines, most often on Republic or Independence Day.

“As a result, many of the pipelines and facilities are jumbled up and some of them go under water during monsoon flooding,â€‌ we are told. “Efficiency has gone down.

â€‌ So too has production, which now stagnates at around 1.6m t/y (just over 30,000 b/d) from 330 wells across all ONGC fields in the state. ONGC feels the much-needed revamp and unblocking will not only increase efficiency but also raise production by “at least 10%â€‌.

For the purposes of the project, ONGC has clubbed its Assam facilities into groups around the three main producing fields of Rudrasagar-Jorhat, Lakwa-Lakhmani and Geleki. “There were a total 42 installations connected to these fields, but these have now been reduced to 29 for the sake of ease of operation,â€‌ we hear.

Primarily, ONGC wants to extend the life of the Rudrasagar-Jorhat, Lakwa-Lakhmani and Geleki fields for another 25 years. “The revamp will increase the life (of the surface facilities) by about 15 years.

â€‌ ONGC says bidders can quote for work at either one, or all three sets of fields.