Vashishta bids delayed

Vol 15, PW 21 (03 May 12) News in Brief
     

More delays are likely in ONGC’s keenly-watched $700m tender to construct offshore and onshore facilities at its deepwater Vashishta and S1 fields off India’s east coast.

ONGC originally meant to invite bids by the first week of May but has postponed this to May 13 for the offshore job and May 15 for onshore. Likely bidders complain they received clarifications only on the evening of April 27 and are unsatisfied with ONGC’s soil investigation report, as it sampled only a few locations to depths of under three metres.

“Why didn’t ONGC carry out an exhaustive soil investigation” questions a source. “It’s difficult to prepare a proper bid with poor data.

” Another complaint is that ONGC has overestimated ‘ambient temperature’ at 47 degrees Centigrade, driving estimated project costs up. “Maximum ambient temperature at this location is 42 degrees,” we hear.

“Why unnecessarily invest in more cooling systems” All major EPC contractors in India are likely to bid for the onshore and offshore project.