Westfield to begin ONGC job
Nigeria’s Westfield Energy is gearing up to execute an ONGC western offshore pipeline replacement contract in September 2024.
Westfield holds the sub-contract from Mumbai-based warship and submarine manufacturer Mazagon Dock. Under the February 9 (2024) $85m purchase order from Mazagon, Westfield had to replace 19 Mumbai High and Neelam-Heera field pipeline segments, adding up to 45-km by May 15 (2024).
However, Mazagon has not yet supplied pipes and other materials to Westfield, which is delaying the project. Mazagon is expected to provide these materials by July 2024.
However, offshore work can begin only after the monsoon season ends in September 2024. A source believes Westfield will likely mobilise its pipelay barge Kennena for this 70-day offshore programme.
Kennena is currently working for Shell offshore in Nigeria, and Westfield plans to "dry tow’ her to India. "Dry tow is expensive compared to wet tow but is faster," says our source.
"Kennena meets all the latest DG shipping safety regulations; only additional lifeboats must be fitted." If Kennena is forced to continue working with Shell, Westfield plans to purchase another pipelay barge from southeast Asia, which it believes won’t take much time.
For the Mazagon work, Westfield will mobilise at least eight vessels plus the pipelay barge. Mazagon received ONGC’s LoA in December 2023 worth $139m, including 12% GST.
Included in the scope of work are installing crossings and subsea pipeline repair facilities, plus placing materials under pipelines to support them on rough seabeds, also known as free-span corrections. Mazagon tied up with Westfield even before bidding for the ONGC contract because it does not own offshore vessels.
Mazagon defeated competition from L&T to win the assignment after ONGC received bids on November 29 (2023). ONGC invited offers on November 9 (2023).