Seismic contractors demand early LOA from ONGC

Vol 8, PW 6 (16 Jun 04) Exploration & Production

ONGCs geophysical team is still recovering from the shock it received from seismic companies during a pre-bid meeting held on 14th June in Mumbai for its seismic survey tenders.

The meeting started at 11am sharp in ONGCs Marine Geophysical Operations office in suburban Andheri. ONGC officials were happy with the turn out.

Nine companies attended: LARGE, PGS, Multiwave Geophysical, SMNG, WesternGeco, CGG, Fugro Geoteam, Westland Geo-Projects and Veritas. But the smiles didnt last long.

After giving a patient hearing to officials on the dais, prospective bidders took charge of the meeting. As usual ONGCs terms and conditions were completely one sided and all of us opposed this, a participant tells PETROWATCH.

They did not have satisfactory answers to our questions. Most questions centred on the technical aspects of the surveys.

ONGC is not ready to take any risk at all. ONGC officials were annoyed when participants (in chorus) sought a commitment from the corporation that it would not delay the Letter of Award (LOA) to the winner.

ONGC officials refused to comment, he said. This was not right.

Veritas argued that if ONGC wants the contractor to complete the job by 15th June 2005 it should issue the LOA by latest 15th July this year. Even if they do reverse engineering we should be able to start work by 1st October including mobilisation.

According to the tender document ONGC told bidders that the LOA would be issued in the first week of September 2004. In the evening, ONGC held another meeting with four companies: Veritas, LARGE, PGS and Fugro for its forthcoming long-offset tender on 2D processing.

Veritas and LARGE made presentations to ONGC while PGS and Fugro made their presentation on 15th June. ONGC is inviting offers to complete a 12, 946-sq km 3D survey and 6, 700-line km 2D survey across the west and east coasts of India.

Bids for both 3D and 2D close at 2pm (IST) on 1st July and will be opened an hour later on the same day.

LNG Summit