TAG Offshore wins most in ONGC boats tender

Vol 18, PW 23 (16 Jul 15) Exploration & Production

Mumbai-based TAG Offshore will be celebrating a string of victories in ONGC's tender to hire 20 boats for five years.

This was one of the largest global tenders around and a clear attempt by ONGC to benefit from low rates against a backdrop of falling global crude prices. ONGC is winning praise for moving the tender forward swiftly despite an overwhelming 166 offers from 26 companies by April 17.

Price bids were opened on July 9 and LoAs are likely to be issued this month (July) for boats to be mobilised within 45 days. In Category A1 where one 150-tonne Anchor Handling Tug (AHTS) is needed GOL Offshore was lowest bidder offering Malviya Ten at $17,710/day.

Category A2 for one 150-tonne AHTS saw Vision Projects Technologies bid lowest with Panama-flagged Lewek Swan at $16,740 followed by Greatship Vidya at $17,730 from Greatship. Because Greatship Vidya is Indian-flagged it has the 'right of first refusal' and will get the contract if it matches Lewek Swan's rate.

Two 120-tonne AHTS are needed in category A3. TAG Offshore was lowest, bidding Singapore-flagged Pacific Banner at $12,900/day.

Details of the second-ranked bidder are unavailable other than that it offered a foreign flagged vessel. Ranked third is Shipping Corporation of India (SCI) offering Kundan at $15,195/day.

SCI will get preference as an Indian bidder and will also get a contract after matching TAG's price.

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