Foster Wheeler

Vol 15, PW 9 (03 Nov 11) News in Brief

Foster Wheeler has won IndianOil’s Front End Engineering and Design (FEED) contract for the proposed 5m t/y Ennore LNG terminal in Tamil Nadu.

PETROWATCH learns IOC issued a Letter of Intent in October to Foster Wheeler, which has begun work. “Foster Wheeler must submit its report within eight months of the date of award,” says IOC.

Competitors are surprised at Foster Wheeler’s stunningly low quote of Rs5.3cr ($1.07m). “I don’t know how they can do the job at that price,” says a rival bidder.

“Other bids ranged from Rs12cr ($2.4m) to Rs14cr ($2.8m).” IOC received eight technical and revised commercial bids from contractors on September 8 but opened only six of them on September 23.

“Engineers India and Black & Veatch didn’t agree to IOC’s suggested deviations from the ‘technical parameters’ of the FEED,” we learn. “IOC didn’t open their price bids.

” Also competing were Tractebel, Sofregaz, Whessoe, Technip and WorleyParsons.