All eyes on McDermott in ONGC pipeline tender

Vol 15, PW 6 (22 Sep 11) Exploration & Production

Contractors are keenly eyeing one of the largest offshore ONGC pipeline-laying tenders this season.

PETROWATCH learns ONGC wants interested companies to submit bids by November 21 in its estimated Rs2700cr ($600m) tender to replace old oil and gas pipelines offshore Mumbai. Abu Dhabi-based National Petroleum Construction Corporation (NPCC) and Houston-based J.

Ray McDermott are among the companies expected to bid aggressively. “NPCC is tipped as the frontrunner to win because of its strong technical capabilities,” says an industry source.

“But it cannot afford to be complacent as (equally capable) McDermott has signalled its intention to re-enter the ONGC offshore EPC business.” McDermott surprised the market last month with low bids in two unrelated ONGC offshore construction tenders for the Cluster 7 and WO-16 marginal fields.

Hyderabad-based SEW Infrastructure could also bid aggressively for the offshore pipeline tender as could South Korea’s Hyundai Heavy Industries. “Hyundai has not won any major ONGC contracts for some time,” we hear.

“It wants to make a come-back.” Other likely bidders include Australia’s Leighton Contractors, UAE-based Valentine Maritime, Delhi-based Shiv Vani and Mumbai-based Great Offshore.

ONGC wants the selected contractor(s) to lay 26 separate pipeline segments, covering a distance of 160.66-km at its Mumbai High, Neelam and Heera fields. ONGC also wants 400 valves replaced at Mumbai High and 61 valves replaced at Neelam and Heera.

Work must be executed in two phases and completed by May 15, 2014. “This tender has come at the right time,” we hear.

“Many pipeline laying contractors have barges available and can quote aggressively.” ONGC can expect good rates as there are few offshore pipeline projects overseas and everybody is hungry for work.

Twenty-two companies bought tender documents between September 2 and September 22. ONGC is hosting a pre-bid in Mumbai on October 7 and wants queries by September 29.

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