Watch out for McDermott at MHSRD-III

Vol 18, PW 14 (12 Mar 15) News in Brief
     

Houston-based McDermott International could pull off a surprise win in ONGC’s tender to revamp and upgrade ageing facilities at the offshore Mumbai High South field (MHSRD-III).

ONGC wants bids in by March 16 for this $900m re-development project, earlier under threat because of falling oil prices. Among bidders will be L&T, Swiber, AFCONS and McDermott.

Some say the battle is between L&T and Swiber but McDermott has also bid aggressively for ONGC offshore EPC projects since the government abolished 'price preference' for Indian companies. “L&T has yards and barges and so does Swiber,” we hear.

“AFCONS has neither so must tie-up with a partner. But this will reduce its ability to offer a good price and ONGC is under pressure to cut costs.

” Some expect ONGC to postpone the deadline as it issued clarifications 10 days ago. But a senior ONGC source tells us: “For now the deadline is March 16.

” ONGC wants three new platforms and 114-km of subsea pipelines by May 2016.

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