SBM pulls out of FPSO race for 98/2

Amsterdam-based SBM Offshore has pulled out of ONGC's ongoing tender to hire a FPSO for the Cluster 2 fields at KG-DWN-98/2.

Unhappy with ONGC's "restrictive" terms and conditions, an industry source tells us SBM wrote to ONGC last month (January) saying it would not bid. This leaves the field open for Japan's MODEC with partner Mitsui & Co and sister company Mitsui OSK Lines or Mumbai-based Shapoorji Pallonji with Bumi Armada Godavari.

ONGC has extended from January 28 to February 18 the FPSO bid submission deadline. "A one week extension (from January 21 to 28) made no sense," adds a source.

Separately, ONGC held a project 'kick-off' meeting in Mumbai on January 18 with Tata Projects, winner of the proposed 98/2 onshore terminal at Odalarevu. Tata was lowest bidder at Rs1154cr ($160.27m) when price bids were opened on November 30 (2018).

BGR Energy was next quoting Rs1402cr ($194.72m); TechnipFMC followed quoting Rs1654cr ($229.72m) and Kalpataru Power Transmission was close behind at Rs1650cr (229.16m). All bids were lower than ONGC's internal estimate of Rs2400cr ($333.33m).

Petrofac and Sairama also bid by the May 31 (2018) deadline.