Balmer Lawrie wins Oil India sludge contract

Vol 20, PW 15 (20 Apr 17) Exploration & Production

State-owned Balmer Lawrie is on the look-out for sub-contractors after winning a Rs18.49cr ($2.9m) Oil India contract to set up and operate an oil sludge processing facility in Assam.

Under the contract Lawrie will set up a sludge processing plant at the Dikom field near well Dikom#15 - notorious as the location of a major blowout and fire in 2005. Sludge which accumulates in Oil India oil tanks and production facilities in central, western and eastern parts of the state will be transported by truck to an Oil Collecting Station (OCS) then pumped to the proposed sludge processing facility.

There Lawrie will extract usable oil from debris, sediments, solids and effluents. "We received the LoA on March 16," confirms a Lawrie source.

Lawrie will operate the proposed sludge processing plant for two years, extendable by another year. Published on November 23, 2016, Lawrie was the only bidder to qualify in this tender after Oil India rejected a technical bid from its only competitor Plant Tech-Midcontinent by the December 23, 2016 deadline.

After winning the contract, Lawrie invited offers on April 5 (this month) from sub-contractors for civil construction, piping, electrical and allied work for the sludge processing facility. Bids were due by April 18.

The facility must have a minimum 20 cm/d capacity to handle up to 10,000 cm/year.

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