Long absent McDermott bids for Daman job

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


Ray McDermott, renamed McDermott International, is returning to Indian tenders after a long gap, encouraged by the government’s decision to scrap ‘price preference’ for Indian bidders. PETROWATCH learns foreign companies are dominating the race in ONGC’s $370m EPC tender to set up platforms and lay pipelines at the Daman field offshore Mumbai.

Four companies sent in bids on November 19: L&T; Swiber; McDermott (95.17%) with India’s Pipavav Defence & Offshore (4.83%); and a consortium of Malaysian companies Kencana (60%) and TL Offshore (40%). At first glance, this is a poor response considering 20 companies bought tender documents by the September 4 deadline.

What’s encouraging is the return of McDermott. “Before price preference was scrapped L&T was the Daman favourite,” says a source.

“Now McDermott could win as it has its own pipe laying barges, offshore supply vessels and other equipment.” Notable absentees are Indian companies Essar Oilfield and AFCONS.

Essar couldn’t put together a consortium and AFCONS stayed away after ONGC refused its request for a two-week bid deadline extension. ONGC will get a good price as it has clubbed the platform and pipeline segments together instead of tendering them separately.

More foreign bidders are expected in future ONGC tenders.

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