L&T favourite for Cairn Raageshwari contract
Speculation is rife that Larsen & Toubro will win an EPC race to set up additional surface facilities at the Raageshwari Deep gasfield for Cairn India at Rajasthan block RJ-ON-90/1.
But Tata Projects might spring a surprise! By the extended November 27 deadline, bids were received from L&T, Petrofac, Tata and Punj Lloyd for this estimated Rs1400cr ($217m) contract. "L&T knows the Rajasthan fields well," says a source, referring to EPC work L&T has previously executed for Cairn in Rajasthan, such as the Barmer to Salaya and Bhogat crude oil evacuation pipeline plus construction of the Mangala crude oil processing terminal.
Our source adds L&T was initially reluctant to bid because it was unsure if Cairn was serious about the project, which underwent several modifications. "But Cairn insisted that L&T participate," we hear.
Tata Projects however is known to bid very low. Some can't help remember when it quoted Rs247cr ($41m), almost half the price of its nearest rival Kalpataru, to win an EPC contract for Oil India to build an oil collecting station in Assam in September 2015.
Tata has also worked for Cairn, setting up surface facilities at the Aishwariya field. Raageshwari is a 'tight gas field,' discovered in 2003 and put on production in 2010.
On average it produced 25m cf/d (708,000 cm/d) from 30 wells during 2016-17; Cairn believes the field has the potential to hit 150m cf/d (4.2m cm/d).