AFCONS smokes LEWPP peace pipe with Triune

Vol 20, PW 8 (12 Jan 17) Exploration & Production

Just before Christmas peace broke out between AFCONS and consortium partners Triune Engineering and Halani Offshore leading to fresh hopes ONGC's two LEWPP (Life Extension Well Platform) projects will be completed by the April 2018 deadline.

An AFCONS source confirms it has dropped plans to expel Triune from LEWPP-1 after several meetings in December. "The LEWPP-1 consortium will remain as is," he says.

"Triune has been given one last chance." AFCONS considered expelling Triune by serving notices in October and November (2016) blaming it for delaying basic engineering. But on December 23 it sent ONGC the minutes of a meeting held between consortium partners a few days before confirming they had resolved their differences.

"But for LEWPP-2 we've decided to appoint Nauvata Engineering to carry out basic engineering, replacing Triune," adds AFCONS. "We're waiting for ONGC's approval before issuing a LoA to Nauvata." AFCONS stresses it does not foresee further delays and is confident it can complete both ONGC projects on time.

"We expect ONGC to approve our proposal (to bring in Nauvata) any day now," adds AFCONS. But ONGC's legal department has yet to approve the AFCONS proposal to bring in Nauvata for LEWPP-2, we hear.

"According to the contract signed between ONGC and the AFCONS-led consortium, engineering cannot be subcontracted," says a source. "ONGC's legal department might see it as an attempt by AFCONS to get Nauvata in through the back door."

LNG Summit