IOC drops plan to bid for Turkey-Greece gas pipeline
Indian Oil has dropped plans to bid for a $100m contract to construct a 210-km natural gas pipeline from Turkey to Greece.
IOC was expected to bid with Stroytransgaz (STG) of Russia but withdrew at the last minute, despite board approval. A source explains IOC found the scope of work unacceptable particularly for the 17-km offshore section of the pipeline where it was expected to carry out all the work on its own: construction engineering, procurement of goods and equipment (except line pipes), inspection, control, and commissioning.
We found it hard to assess the cost of laying the offshore pipeline, admits IOC. It depended on the availability of barges.
STG offered IOC 50% in the joint venture but IOC wanted only 35%. All is not lost, adds IOC.
We might enter the project at a later stage if STG wins the contract. IOC and STG jointly constructed a gas pipeline from Baroda to Kalol for Gujarat State Petronet.