ONGC new tender for Assam

Vol 12, PW 21 (26 Mar 09) News in Brief
     

ONGC is planning to issue fresh tenders to upgrade ageing surface facilities at the Geleki (Group B), Rudrasagar, Borholla and Koraghat (Group C) fields in Assam, following its decision to issue a Letter of Intent (LoI) this month to Sairama for the Lakwa and Lakhmani (Group A) fields.

On March 5, ONGC formally scrapped an earlier tender for Groups B and C, first issued in December 7 last year, because of wide differences between its estimated price and the quotes offered by lowest bidder Punj Lloyd. In the new tender, Groups B and C will be divided into five parts.

“This way ONGC can attract more competition,â€‌ says a source. In the earlier tender Punj was lowest bidder for both jobs, quoting Rs3000cr ($600m) for Group B (double ONGC’s estimate) and Rs2500cr ($500m) for Group C (again, double ONGC’s estimate.

) ONGC held negotiations with Punj in a bid to bring down the quotes, but was unsuccessful, compelling it to scrap both tenders.