L&T favourite to win Daman development tender

Vol 18, PW 3 (25 Sep 14) Exploration & Production
     

Larsen & Toubro is favourite to win ONGC’s estimated $370m western offshore Daman field development project.

By the September 4 deadline, extended from August 21, some 20 companies had bought tender documents but only a few are likely to qualify, say analysts. “This is a massive project to build and install seven well-head platforms, a riser platform and lay subsea pipelines,” says a potential bidder.

“To be competitive you need a yard to build the platforms.” Only companies with a pipe-laying barge and capacity to handle complex offshore installations stand a chance,” he adds.

With two yards in India and one in Oman, analysts predict L&T will clinch the deal. “L&T’s costs will be less than companies with overseas yards,” we hear.

“Building work can be divided between its two Indian yards.” L&T is expected to work with Abu Dhabi’s National Petroleum Construction Company (NPCC) for the transportation and installation of jackets and topsides similar to an arrangement it has for the Mumbai High North five well-head platform project, which it clinched on August 1, quoting $219.22m.

This is the first time after five years ONGC has clubbed together well-heads and pipelines in an offshore field development tender, say sources. AFCONS is also a strong contender but doesn’t have a yard or barges.