BG defends late PMT diving award to MEDS

Vol 19, PW 12 (25 Feb 16) People & Policy

BG has stoutly denied allegations of impropriety in a tender to hire diving services for five years at the Panna, Mukta and Tapti (PMT) fields off Mumbai.

Under the scanner is a contract for diving services for inspection, maintenance and repair awarded to Sharjah-based Marine Engineering Diving Services (MEDS) in late January by PMT joint operators BG, ONGC and Reliance. Rival bidders allege MEDS was unusually brought into the tender after price bids were submitted and technical evaluation completed.

"What you're saying is not factually correct," counters BG vice-president contracts and procurement Pramod Kumar, contacted by PETROWATCH. "Do you think such things happen at BG? What is your locus standi (interest) in this matter? Write what you want! But please check with whoever gave you this information.

" BG issued a tender on April 2, 2015 for a contractor to provide subsea inspection services and maintain and repair 13 jackets, 42 risers and one single point mooring system. On May 14, 2015 bids were received from Dunnimaa Engineers & Divers, Dolphin Offshore, Core Offshore, Supreme Hydro Engineering and Kreuz Subsea.

Dunnimaa later pulled out. After technical evaluation in October, Core's bid was rejected, one assumes because it is a new company - incorporated in January 2015 - without experience, despite technical back-up from MEDS.

When price bids were opened, Supreme bid lowest, quoting Rs120cr ($17m) but during negotiations on December 22 offered a Rs35cr ($5m) discount. At this time the JV asked MEDS to bid.

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