L&T ignores Valdel JV for BCPA-3 engineering

Vol 18, PW 22 (02 Jul 15) Exploration & Production

Engineering consultants pay attention: L&T is likely to subcontract work from its $419m EPC contract for ONGC's offshore Mumbai BCPA-3 platforms project at the Bassein field, announced on June 24.

ONGC wants subsea pipelines, bridges and three platforms: one process platform, one living quarters platform and an unmanned well-head platform. You would think L&T would appoint its affiliate L&T Valdel.

But L&T Valdel has only independently carried out engineering for living quarters platforms and unmanned well-head platforms not process platforms. "L&T Valdel carried out engineering for (ONGC's offshore Mumbai) MNW process platform but Aker Malaysia checked the details," says a source.

"So L&T Valdel has no independent experience." Most think L&T will hire Aker Malaysia as it has worked with Aker in the past. ONGC opened price bids for the BCPA-3 tender on June 19.

McDermott came second with $437.834m, Technip India and Kencana came third quoting $552.93m and AFCONS and Swiber was last at $674.98m. All prices exclude 14% service tax.

Analysts wonder where L&T will manufacture the BCPA-3 units: at its two Indian yards, Kattupalli in Chennai and Hazira in Gujarat, or at its Sohar yard in Oman? "If L&T chooses Sohar how can it justify trumpeting the Make in India policy?" says a source. L&T, he reminds us, unsuccessfully complained to ONGC's Independent External Monitors in May against Malaysia's Kencana winning an unrelated tender for the offshore Mumbai MHSRD-III project.

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