ONGC issues $1.3bn FPSO tender in days ahead

Vol 20, PW 11 (23 Feb 17) Exploration & Production

Five months after its EoI notice, ONGC is at last expected to issue a $1.3bn tender to hire a Floating Production Storage and Offloading (FPSO) unit for its promising KG-DWN-98/2 development.

This report learns ONGC will issue the tender before the end of this month (February) to four pre-qualified contractors: Japan's MODEC, Malaysia's Bumi Armada bidding with Mumbai-headquartered Shapoorji Pallonji Group, Norway's BW Offshore and Netherlands-based SBM Offshore. MODEC and SBM are expected to be the frontrunners.

"We were expecting the tender last month (January)," said a likely bidder on February 20. "But ONGC delayed it until it finished changing tender terms.

Now we hear the tender will be out February 24." ONGC has agreed to MODEC's request to allow a Special Purpose Vehicle or 100% subsidiary to bid. It has also agreed to change the financial criteria as Bumi and Shapoorji wish to qualify based on the net worth of the parent companies of their JV.

ONGC wants a FPSO that can handle up to 90,000 b/d of oil, 3.8m cm/d of gas and 30,000 b/d of water. This is in line with its $5.08bn Field Development Plan approved on March 28, 2016 which envisaged peak oil production of 77,305 b/d and associated gas of 3.81m cm/d through 15 producer wells along with 12 water injection wells with a peak water injection rate of 9400 cm/d.