Pipavav protest provokes more ONGC anger

Vol 17, PW 25 (31 Jul 14) Exploration & Production

Pipavav Defence & Offshore is a 'poor performer', says ONGC.

But that hasn't stopped it bidding in ONGC tenders or protesting when it is disqualified. A complaint by Pipavav has forced ONGC to delay opening price bids in its Mumbai High North Redevelopment (MHNRD) platform tender until mid-August or later.

Pipavav appealed to ONGC's Independent External Monitors (IEMs) on July 17 after hearing it was disqualified on technical grounds. “We are well qualified but ONGC rejected us,” says Pipavav.

“This left us no choice but to approach the monitors.” ONGC received five bids to construct five new wellhead platforms and modify three platforms on April 17.

Pipavav was disqualified after technical and commercial clarifications on May 30. One bidder says ONGC is unhappy with Pipavav over delays on a separate contract to deliver Offshore Supply Vessels (OSVs) and another to upgrade a Mobile Offshore Production Unit (MOPU).

Pipavav’s decision to delay the MHNRD tender is unlikely to improve its standing at ONGC, which has missed an internal target to award the project by July 25 this year for completion by March 31, 2016. Pipavav bid with Italy’s DG Impianti as technical partner; Swiber India bid with Swiber Singapore; AFCONS bid with Malaysia’s TL Offshore; Essar Offshore bid with Russian-Vietnamese JV Vietsovpetro; and L&T bid alone.

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