SapuraKencana quotes lowest for ONGC B-127

Vol 19, PW 26 (08 Sep 16) Exploration & Production

Malaysian company SapuraKencana doesn't have much luck in India but when it does it is extremely grateful.

A company source confirms Sapura and partner TL Offshore have won ONGC's B-127 project after losing out to Abu Dhabi-based NPCC in the LEWPP-3 tender. "We are very happy!" says a company source.

"We will start work as soon as we get the LoA which we are expecting mid-September." When ONGC opened price bids at 3pm on August 26 Sapura and TL quoted $123m in the reissued tender for the offshore Mumbai pipelines project; NPCC quoted $166m and Valentine Maritime with Supreme Offshore (India) quoted $177m. Hot favourite Swiber also bid by June 10 against a backdrop of ONGC concerns that the company had deviated drastically from the tender conditions by submitting a guarantee from its Singapore parent company and a net worth certificate from its Indian subsidiary.

ONGC had earlier wanted to award this contract without tender to Swiber after the original contract winner Punj Offshore failed to complete the project. Punj had originally won the contract for Rs730cr ($110m) after price bids were opened on April 25, 2013.

But by May 1, 2016, cash-strapped Punj had completed only 16.20% of the work - two years after the original May 2014 completion deadline.