L&T denies RUMP-I and II project delay rumour

Vol 18, PW 8 (04 Dec 14) Exploration & Production

Larsen & Toubro has hit back at rumours that it is behind ONGC’s decision to delay a decision on the offshore Mumbai RUMP-I and RUMP-II projects, where price bids are still to be opened.

Two bidders tell this report separately that L&T has complained to ONGC’s anti-corruption department about a decision to extend the RUMP-I bid deadline by seven days from December 19, 2013 to December 26. L&T is unhappy because the extension was granted only a few minutes before the December 19 deadline.

When contacted, L&T strenuously denies this. “This is not our fault,” says a source.

“L&T does not do such things. ONGC is having problems with other bidders.

Both tenders will be scrapped and reissued. That’s what ONGC is telling us.

” In October ONGC further extended the Notice of Award (NOA) date for RUMP-I to December 14, 2014 from October 27, itself extended from the original February 25, 2014 deadline. Anxious bidders believe it is becoming impossible to meet ONGC’s May 16, 2016 project completion deadline for RUMP-I.

L&T and AFCONS have clearly told ONGC they can’t complete the project by May 2016 given the new NOA date. “One fair weather window has gone,” says a source.

“The schedule is completely out of control. Whoever agrees this new NoA and takes the project will be in big trouble.