L&T-McDermott disqualified in 98/2 EPC tender

Vol 21, PW 10 (22 Feb 18) Exploration & Production

ONGC's long-delayed $5.067bn Cluster 2 development project at KG-DWN-98/2 is finally taking shape but a consortium of L&T and McDermott International is not celebrating.

In a shock upset, L&T with McDermott has been disqualified from ONGC's tender to set up an offshore Control and Process Platform with Living Quarters for the 98/2 project in water depths of about 30 metres. AFCONS with Sapura Energy and a Megha Engineering joint venture with Turkey's ILK had also submitted bid documents in paper form by 13.00 hrs local time on February 5.

But unlike its two rivals, L&T with McDermott failed to upload the documents by 1400 hrs on ONGC's website. ONGC announced at 19.26 hrs the same day that the L&T consortium was disqualified and issued a formal letter confirming this at 20.30 hrs.

Some believe L&T will fight to have this project re-tendered and blame ONGC's slow server for the problem uploading bid documents. Meanwhile, ONGC received bids on February 19 for its nearly $2bn Subsea Production Umbilicals Risers Flowlines (SPURF) tender at 98/2 from TechnipFMC, McDermott with GE and Larsen & Toubro, Subsea 7 with OneSubsea, and Aker Solutions with Saipem.

Whoever wins must procure equipment and install it from the 98/2 gas landfall point to water depths of up to 1200 metres. ONGC expects initial gas flow from four wells between April and June 2020, and from the remaining 26 oil and gas wells a year later.