All eyes on Nhava supply base tender at ONGC

Vol 23, PW 19 (30 Jul 20) Exploration & Production

No one doubts ONGC's offshore supply base at Nhava on the Maharashtra coast is poorly managed and bursting at the seams.

But ONGC's latest move to streamline operations has been greeted with widespread scepticism following earlier steps that went nowhere. Many in the industry are raising eyebrows at ONGC's planned tender for a seven-year operations and maintenance contract estimated to be worth Rs2100cr ($280m).

At least eight companies attended an online EoI meeting over three days on July 6, 7 and 13 after ONGC invited EoIs on May 28 (2020). Among those attending were Allcargo Logistics, BRL Logistics, Arya Offshore and OCS India.

Industry sources are sceptical about the EoI and future tender, tentatively scheduled for December (2020). "I am not clear what is driving ONGC to issue an EoI at this time," says a source.

Much of the scepticism centres on ONGC's decision to outsource Nhava operations twice before in 2004 and 2010. ONGC later shelved both tenders.

"The EoI meeting was successful," counters an ONGC source. "Based on the inputs we received at the meeting, we are refining the scope of work."

Companies have suggested changes, and now ONGC wants to include these changes. "We have to be careful as this is a mega project," adds ONGC.

Our source adds that in line with the current scope of work, the project should cost Rs300cr/year ($40m), adding up to Rs2100cr ($280m) over seven years.