Pipavav Defence is 'poor performer', says ONGC

Vol 17, PW 23 (03 Jul 14) People & Policy

Mumbai-based Pipavav Defence & Offshore has strongly defended itself after ONGC labelled it a "poor performer" in a June 24 review of delayed projects.

In the first such review carried out since DK Sarraf became chairman, ONGC highlights Pipavav's slow work on major offshore projects, among them a contract to deliver 12 Offshore Supply Vessels (OSVs) by 2012. So far it has delivered just four.

A Pipavav manager blames the delay on modifications to the original Wartsila design by ONGC to meet Indian norms. “Four more OSVs will be delivered in the next two or three months and by December all will be delivered,” he says.

ONGC counters that design changes were resolved by December 2011. “The delay is due to inefficiency and poor project management by Pipavav,” adds a senior ONGC source.

Another area of contention centres on a $69.87m contract awarded in December 2012 to upgrade Mobile Offshore Production Unit (MOPU) Sagar Laxmi with a completion deadline of April 15, 2014, extended by ONGC to December 31, 2014. Pipavav blames delays on ONGC’s failure to supply a Siemens gas turbine and now says the project won’t be completed before May 2015 as ONGC is likely to supply the turbine in October this year.

ONGC says Pipavav is making excuses to "cover its lack of experience" and complains only 14.85% of work was completed by June 24, against an expected 70.6%.

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