Greatship bids lowest in ONGC vessels tender

Vol 22, PW 26 (17 Oct 19) Exploration & Production

True to its reputation, ONGC wants lowest bidder Greatship to slash its price for two Platform Supply Vessels (PSVs) under a tender for six vessels in the western offshore to replace those hired from blacklisted TAG Offshore.

On September 25, Greatship bid lowest in the PSV category for a three-year contract, offering Greatship Dhriti and Greatship Dhwani, each for $7650/day plus 5% Goods and Services Tax (GST). Shipping Corporation of India (SCI) was second, offering SCI Yamuna at $8098/day plus 5% GST.

ONGC wants a further price reduction and the first round of negotiations took place on October 3. Greatship is supposed to submit a revised price bid but some say it's unfair of ONGC to seek a further reduction when the rates are already lowest in the region.

"Long-term PSV rates in South East Asia are at least $8000/day," says a source. "ONGC should compare Greatship’s rate with SCI which is the going rate in this region."

Price bids from Hind Offshore, Samson Maritime and Global Offshore were not opened as they could not confirm availability of PSVs. Still unclear is when ONGC will issue LoAs for this category and four 80-tonne bollard pull capacity Anchor Handling Tug cum Supply Vessels (AHTS).

ONGC originally wanted two Offshore Supply Vessels as well but changed its mind after bids were received on May 9 when disagreement surfaced with bidders over how much tax these vessels would attract.