ONGC pepares PMC selection for KG-DWN-98/2

Vol 20, PW 13 (23 Mar 17) Exploration & Production

Depressed oil prices and bleak market conditions are likely to work in ONGC's favour in an estimated Rs800cr ($122m) to Rs1000cr ($153m) project consultant tender.

ONGC needs a project consultant for its $5bn development of oil and gas discoveries in Cluster 2 at eastern offshore deepwater block KG-DWN-98/2. "But due to depressed oil prices, consultants do not have much work and personnel rates have fallen," says a source.

"ONGC will get a good rate because everybody is looking for work!" He adds ONGC managers on March 9 sent across the draft pre-qualification document to director offshore TK Sengupta so consultants can be shortlisted before tender documents are issued to them. Industry sources said Sengupta signed off on the proposal last week and the pre-qualification document was uploaded to the ONGC website on March 21.

ONGC will hold an 'interactive session' with potential bidders, probably at Kakinada, on March 31 at 11am to discuss the scope of work, pre-qualification criteria and experience requirements. If there are no major objections, ONGC wants to receive the completed pre-qualification documents by April 17 and is likely to award the contract by end-July.

Likely companies interested include Bechtel, Foster Wheeler, Kellogg Brown & Root, Wood Group, Pegasus International, and Italy's D'Appolonia. "These are some names," says a source.

"Others might also be interested."

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