Another set of bids for Reliance's R-Series bet

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

Slowly but surely, Reliance is making progress with the proposed $3bn development of its R-Series and Satellite fields despite lingering doubts about its commitment.

EPC contractors submitted revised price bids this month (February) after intense negotiations over the two or three months that have elapsed since it received their original bids late last year (2016). "Reliance tried to squeeze our margins to nothing," complains one contractor.

On February 15, Reliance received revised price bids for the installation of subsea umbilicals, risers and flowlines from pre-qualified Allseas Group, McDermott International, Saipem, Subsea7 and Technip. Earlier on February 7 revised proposals for the subsea production system came from OneSubsea, Technip with FMC, and GE with Aker Kvaerner; umbilicals manufacturers also submitted revised bids, among them Prysmian Group, JDR Cable Systems, Oceaneering, Technip and Aker Systems.

Reliance is now negotiating with pre-qualified line pipe manufacturers and suppliers. Still unclear is when it will get revised price bids for that part of the project.

Whether any contracts are awarded depends on what gas price Reliance can expect as it pursues its demand with the oil ministry for a rate of $6.80-$7.08/mmbtu set by the government in March 2016 for production from deepwater fields. Some fear it will get the unviable rate of around $2.50/mmbtu - the government's six-monthly gas price for conventional fields, expected to increase by only 8% from April 1.

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