Umbilical/FPSO suppliers meet ONGC for 98/2

Vol 19, PW 5 (05 Nov 15) Exploration & Production

In the market most people believe ONGC is deliberately going slow with plans to develop its eastern offshore deepwater KG-DWN-98/2 and G4 blocks because of the low domestic gas price.

But in public at least ONGC is sending out positive signals. Last month (October) it held meetings with equipment suppliers in preparation for crucial tenders for the development programme.

On October 20 in Mumbai ONGC met suppliers of 'umbilicals' – cables and pipes linking offshore platforms and subsea equipment so they can be controlled from the surface. Among those who attended were Aker Systems, Technip, Prysmian Group and Oceaneering.

ONGC explained its development concept for the Cluster 2 fields covering 3200-sq km at the block in water depths of 500-1300 metres, repeating the by now familiar line that it plans 40 gas, oil, and water injection wells and will begin production from 2019. Each company then made a closed-door presentation to an ONGC team led by project director Alok Nandan.

ONGC also said it has yet to decide whether to order the umbilicals separately and hire an installation contractor or club the two jobs together in a composite EPC tender. All the companies strenuously advised ONGC not to club the umbilical and subsea production system tenders together as it had at the Vashishta and S1 fields.

In those tenders the net result of that action was that no valid bids were received.

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