Hyundai bids lowest in ONGC vessel tender

Vol 17, PW 23 (03 Jul 14) News in Brief

South Korea’s Hyundai Heavy Industries (HHI) has a narrow lead on sole rival Singapore’s Sembawang Shipyard in ONGC’s re-issued tender to construct an offshore well stimulation vessel.

When ONGC opened price bids on June 18, it found HHI had bid $241m while Sembawang had bid $242m. “Sembawang bid in Singapore dollars and HHI in US dollars,” says a source.

“When both prices were converted to Indian rupees then to US dollars HHI was cheaper by $700,000.” Still unclear is when ONGC, which is still evaluating bids, will award the LoI to HHI, if at all.

ONGC, which received bids on January 20, internally estimated the value of this contract at $215m against the $150m estimated in the previous December 2011 version of this tender. That tender was scrapped when sole valid bidder Netherlands-based IHC Offshore & Marine quoted $250m.

IHC later slashed its rate to $244m but this still wasn't good enough for ONGC.