More extensions for 98/2 work

Vol 20, PW 21 (13 Jul 17) News in Brief

After receiving more than 4000 queries, ONGC appears certain to yet again extend the July 14 deadline for a subsea tender to develop its flagship KG-DWN-98/2 licence on the east coast.

ONGC originally pushed the deadline from June 30 to July 14 for the Subsea Production System and Subsea Umbilicals, Risers and Flowlines (SPURF) and offshore control and process platform tenders. "ONGC has not even yet sent out all the clarifications on queries from the (May 4 SPURF) pre-bid," we hear.

One set went out on June 12, another on July 4. After answering commercial and technical queries, ONGC must allow 21 days to prepare bids.

Also extended from June 21 to July 21 is the deadline for qualification documents for the 98/2 FPSO. "No explanation was given," says a likely bidder.

"Anyway, ONGC wants the FPSO only from 2020." Some say these delays are because ONGC has changed the methodology with a view to producing token quantities of gas from June 2019 or because of the oil ministry's April 26 directive to include local content. Others speculate it is to allow bidders to rework price bids in line with the new Goods and Services Tax introduced on July 1.