L&T awaits news on N9 and N10 platform

Vol 7, PW 3 (23 Apr 03) Exploration & Production

SIMILAR IS the fate of a contract for the N9 and N10platform project offshore Mumbai - part of the Mumbai High North revamp.

Here too, L&T is the only bidder after ONGC declined to open the price bid of Mazagon Docks. We understand ONGC got a shock when it opened L&T's price bid of $97.5m for N9 andN10 on 12th April against its own estimate of $78.6m - a 24% difference.

Industry sources tell PETROWATCH that ONGC's estimates for this project are way off the mark compared to its own estimates for the N11 and N12 well platforms project awarded in March 2002 to a team of Engineers India and J. Ray McDermott.

"ONGC estimated $83m for the N11 and N12 project which has components similar to the N9 and N10 project. The platforms are similar and so are several other facilities.

In fact in the N9 and N10 project ONGC has added more facilities, necessitating the increased cost. How do they justify having a lower estimate for N9 and N10" ONGC rejected Mazagon Dock's technical bid for the N9 and N10 well platforms because it said it could only complete it by December 2004 or January 2005.

ONGC wants it completed by March 2004 and only L&T said it could complete the job latest by April 2004 only a month later. Mazagon Docks also asked if it couldsubmit an increased price, and this counted against it.

As a state-owned company Mazagon Docks could have qualified for 'Price Preference' but failed to produce the necessary paperwork. All is not lost.

Says ONGC: "We are in talks with L&T over price. We feel they are overcharging us.

But if talks break down we will negotiate with Mazagon Docks."