Triune expulsion to cause LEWPP-1 legal fiasco

Vol 20, PW 7 (15 Dec 16) Exploration & Production
     

A disagreement between EPC contractors threatens to derail ONGC's Life Extension Wells Platforms Projects (LEWPP-1 and LEWPP-2) and lead to a major legal battle, possibly in court.

ONGC's offshore engineering services has prepared a note for its management recommending Delhi-based Triune Energy's expulsion from the AFCONS-led consortium hired in January 2016 to execute LEWPP-1. Triune's delay in submitting the site survey report apparently angered AFCONS to the point where billionaire owner PS Mistry asked for oil minister Dharmendra Pradhan's intervention on November 25 at a meeting attended by AFCONS managing director K.

Subramanian and ONGC chairman DK Sarraf. "ONGC played a neutral role in the disagreement until Pradhan intervened," says an industry source.

"Then they changed their position and the process of removing Triune was initiated." Earlier on November 15, ONGC director offshore TK Sengupta called the parties together at a meeting also attended by offshore engineering group representatives and Mumbai High asset manager Rajesh Kakkar. "At that meeting Triune stressed that AFCONS has yet to provide details of its vendors and suppliers." Next AK Jain, a Halani employee who earlier headed ONGC's offshore engineering group, was asked by EPC partners to carry out an independent audit of Triune's basic engineering for six minor platforms.

"Jain spent November 16 and 17 at Triune's Delhi office," we hear. "He didn't find any problems."