ONGC sticks to Assam revamp deadline

Vol 12, PW 2 (12 Jun 08) News in Brief
     

ONGC is unlikely to extend the bid deadline beyond (Monday) June 16 for its Rs2300cr ($575m) plan to revamp ageing production facilities in Assam, despite an increasing clamour from contractors.

Larsen & Toubro is one of several high-profile contractors asking ONGC for another two-week extension. “Four extensions have already been given,â€‌ ONGC tells us.

“No more extensions are possible.â€‌ ONGC recognises that its Assam project is complex, involving the upgrade and modernisation of facilities in a remote region beset by separatist militancy.

“We understand the concern of contractors,â€‌ adds ONGC. “Equipment suppliers are not willing to confirm delivery schedules these days because of full order books but we can’t keep waiting for ever.

â€‌ ONGC expects the three-year upgrade of its Assam asset to result in a 10% increase in annual crude production of 30,000 b/d across the state and increase the life of its surface facilities by 15 years.