Petrofac cracks Barmer refinery tenders

Vol 23, PW 5 (16 Jan 20) News in Brief

After fears it would be disqualified, Petrofac finally bid lowest on January 13 when Hindustan Petroleum opened price bids to set up a polypropylene facility at its proposed Barmer refinery in Rajasthan.

Petrofac quoted Rs3800cr ($536m) for the facility with two trains of 490,000 t/y capacity each and a 59,000 t/y Butene-1 unit. Tecnimont followed with Rs3850cr ($543m) while L&T quoted Rs4100cr ($578m).

Petrofac’s victory came after months of uncertainty about whether it would be allowed to bid after one of its executives admitted bribery charges in the UK. Toyo Engineering meanwhile received the LoA on January 13 for the EPC contract to set up a Diesel Hydrotreater (DHDT) and Hydrogen Generating Unit (HGU) at Barmer, after offering a discount of up to 3% on its lowest price of Rs1571cr ($222m) unveiled on December 9.

Petrofac was far behind at Rs1858cr ($262m). Still unclear is if Tata Projects will get the LoA for Barmer’s Sulphur Recovery Unit (SRU) where it bid lowest at Rs1671cr ($236m) when price bids were opened on December 12.

This is because Tata’s quote is around Rs400cr ($56m) higher than HPCL's budget. By early this week Tata had not been called for negotiations.