MSV tender from ONGC comes around again...

Vol 16, PW 20 (02 May 13) Exploration & Production

Here’s some good news for Dubai-based Drydocks and other foreign shipyards: ONGC is poised to re-issue a controversial tender to construct an offshore Multi Support Vessel (MSV).

ONGC, we hear, has almost finished preparing tender documents which will be sent for approval to director offshore PK Borthakur any day now. “Within the next 10 to 15 days the tender will be out,” says a source.

In an earlier aborted MSV tender Dutch company IHC Offshore & Marine bid lowest at $196m. This was negotiated down to $185m by ONGC but was still 36% higher than the $135.75m internal estimate.

Drydocks was disqualified after it stupidly revealed its $176m quote and has been pressing for a re-tender ever since. ONGC’s Executive Purchase Committee (EPC) approved the re-tender in January and should have published a notice within a month.

But delay ensued when ONGC's technical and finance divisions clashed over the Bid Evaluation Criteria: the technical division said the new tender should not relax the MSV technical specifications but the finance division wanted to relax them so Indian yards could bid. Eventually the technical argument prevailed.

“There will be hardly any change," adds ONGC. "The new tender is almost identical to the old one.

” ONGC will ask for a MSV with Dynamic Positioning-III (DP-III) capability, ruling out Indian shipyards as they are not equipped to manufacture MSVs with DP-III capability. “We are increasing our operations in the eastern offshore,” says ONGC.

“Harsh weather conditions (in the eastern offshore) make DP-III vessels essential.” ONGC has no DP-III MSVs in service and estimates it will take three years for any MSV to be delivered from the date of order.

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