Sapura confuses ONGC with high C-26 bid

Vol 20, PW 10 (09 Feb 17) Exploration & Production
     

ONGC is struggling to decide whether to award its C-26 subsea contract to SapuraKencana after the Malaysian contractor quoted more than three times its $6m internal estimate.

SapuraKencana ranked first with $21.485m when ONGC opened price bids on January 27 for the subsea component of the offshore Mumbai C-26 cluster platform modification tender - earlier known as the C-26 pipelines project. Kreuz Subsea was the only other bidder quoting $22.231m.

"If the difference between ONGC's estimate and Sapura's quote was about 15-20% it could have been explained away," says an industry source. "But that's not possible when the difference is this wide." Included in this tender is unfinished work by financially distressed Singapore company Swiber Offshore which was awarded the composite project in April 2015 for $133m.

ONGC scrapped Swiber's contract for the C-26, Daman development and PRP-IV offshore Mumbai projects on December 14, 2016 after a judicial manager appointed by the Singapore High Court informed it that Swiber had no funding to complete work. ONGC then split up the unfinished work and re-configured the C-26 project into the subsea and platform topside parts and issued only the subsea tender on December 28.

Of the original C-26 contract value of Rs836.42cr, Swiber was paid Rs697.42cr ($104m) leaving a balance Rs139cr ($21m) which according to ONGC is the combined value of the unfinished subsea and platform work.

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