Swiber and Leighton to battle for PRP-IV

Vol 17, PW 26 (14 Aug 14) Exploration & Production
     

Twenty seven companies bought bid documents in ONGC's Pipeline Replacement Project-IV (PRP-IV) tender but industry sources say two in particular want it bad enough to put up a good fight.

Swiber and Leighton are tipped as frontrunners in the race to replace old ONGC subsea pipelines in the Mumbai offshore where tender documents were sold from July 5 to July 25 with bids due by September 8. “Swiber has a barge available and no current ONGC contracts so is hungry for a job,” says a likely bidder.

Swiber will also be aching to regain lost pride after being defeated narrowly, by around $8m, by Larsen & Toubro in ONGC's MHNRD-III platform project. Leighton at first might not seem such a great contender, given that it's downsizing, with staff in India leaving or asked to leave.

But the company wants to win PRP-IV as it is currently executing ONGC’s Rs1417cr ($231m) PRP-III project, the $90m Additional Pipeline Project and the Rs560cr ($91m) Heera Redevelopment Phase-II project. “Leighton believes it has a lot of useful Mumbai offshore subsea pipeline data to bid aggressively for PRP-IV,” we learn.

ONGC estimates PRP-IV will cost $480.52m and wants the project completed in two phases by May 15, 2016 and May 15, 2017. Others likely to bid aggressively are L&T and AFCONS.