Punj Lloyd in dog-house over PMT contract

Vol 16, PW 23 (13 Jun 13) Exploration & Production

Punj Lloyd has been blacklisted by PMT joint operators BG, Reliance and ONGC for failing to execute a SBM replacement contract.

PETROWATCH learns Punj won’t be invited to bid in a $12m ‘Riser Remedial Job and Subsea Pipeline Repair’ offshore tender, expected in September. Punj was also barred from a $65m offshore MB well head platform installation tender, issued in January, where BG is evaluating technical bids.

PMT partners are livid that Punj has failed to complete a $20m contract awarded in 2011 to install and commission a new SBM at Panna. Punj should have completed the assignment last year, but postponed it by a year.

To widespread astonishment, Punj now says it will finish work by next year’s monsoon in 2014. Critical long-lead items like the buoy and a 12-inch diameter, 3-km subsea pipeline have already arrived on time, making the delay harder to fathom.

“BG did all the engineering,” we learn. “Punj only had to construct and install the (subsea) Pipeline End Manifold, lay the 3-km pipeline from the PPA process platform to the SBM, install the riser and buoy, and commission the system.

” Punj used barge Madhwa to lay the pipeline despite problems with its crane, but could not install the risers or SBM. “We need to replace the old SBM at the PPA platform because ABS (a certification agency) is not giving all-season approval and insists on inspection before each monsoon,” we hear.

“Four of the six chains which tie the SBM to piles on the seabed have been replaced with anchors. This could pose safety problems.