Good response expected for ONGC pipeline tender

Vol 17, PW 14 (27 Feb 14) Exploration & Production

Expect fierce competition in ONGC’s tender to lay 21 new pipelines at Mumbai High North.

Tender documents are on sale from February 7 until March 7 and bids must be in by April 28. “All the players, big and small, Indian and foreign, should buy the tender documents,” says a source.

“Swiber, Valentine Maritime, Essar Offshore, Larsen & Toubro and Great Offshore are all likely to bid but it’s too early to say who is favourite. All depends on which company is desperate to fill its order book.

” ONGC estimates the project cost at Rs1264cr ($210m) but this figure still needs board approval, seen as a formality. ONGC wants to lay pipelines adding up to 176.9-km to transport well fluids and for gas lift, evacuation and water injection.

In addition, the project involves buying and installing a subsea umbilical. ONGC wants to award the contract by June 23 so the project can be completed by April 15, 2016.

This pipeline project is tied to the Rs1456cr ($242m) Mumbai High North Redevelopment Phase-III five well-head platform project (MHNRD Phase-III) for which ONGC has again extended the bid submission date, first from January 8 to February 18, and now to March 3. “No reasons were given,” says a dismayed bidder.

One rumour has it the delay is because ONGC’s board hasn’t yet approved the budget. "We are tendering," says ONGC, declining to comment.

"I can't share details."