IHC offers discount to ONGC

Vol 18, PW 12 (12 Feb 15) News in Brief

Netherlands-based IHC Offshore & Marine has offered a €4m discount to ONGC on its €176m offer to build a Multipurpose Support Vessel.

On January 12, IHC wrote to ONGC offering the discount after repeated attempts by ONGC to negotiate the price. “We asked IHC to negotiate the price in November (2014),” says an ONGC source.

“But they kept delaying it. Finally, they sent us a letter.

” ONGC opened sole bidder IHC’s price bid on October 31, 2014 after disqualifying Spain’s Factorias Vulcano and China’s Yantai CIMC Raffles Offshore. “IHC’s price is now €172m ($199m),” says a source.

“It’s still higher than ONGC’s $190m estimate.” An ONGC source says its tender committee is preparing a note for the Executive Purchase Committee (EPC) which will be discussed at its next meeting.

ONGC accepted technical bids on April 4, 2014. In 2012, IHC was also sole bidder in the last version of this tender, scrapped because IHC’s $196m quote far exceeded ONGC $136m estimate.