ONGC western offshore pipeline tender

Vol 18, PW 5 (23 Oct 14) News in Brief

Next month (November) ONGC is expected to issue a tender to lay subsea pipelines in the western offshore.

Sources say this tender will be made up of the scrapped tender to lay 14.7-km of pipeline at the C-26 fields in addition to 6.4-km of pipeline at Mumbai High South, 4.3-km at the B-127 field, 33-km at the Heera field, 10-km at the C-Series fields and 3.3-km at the Neelam field, adding up to 71.7-km. ONGC met pipeline contractors on September 27 to announce the scope of work.

ONGC is insisting that if the selected contractor fails to complete work by the May 2015 deadline then it will be banned from all ONGC work for one year. “We told ONGC this is unworkable,” says one bidder.

“Delays are caused by factors beyond our control.” ONGC scrapped the C-26 pipeline tender after lowest bidder Essar offered to lower its price by just 0.6% from the $34.01m it quoted when price bids were opened on August 11.

ONGC’s internal estimate for this project was $15.7m.

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