FPSO tender flops

Vol 14, PW 18 (10 Mar 11) News in Brief
     

Only three companies submitted bids on March 3 in a disastrous ONGC tender to hire a Floating Production and Storage Offshore (FPSO) vessel for seven years.

Around 30 companies were originally interested and bought bid documents. PETROWATCH learns that Malaysian companies Bumi Armada and M3nergy are in the race, as is India’s Mercator.

But accusations are flying thick and fast about ONGC designing the tender to favour Bumi Armada and keep Indian companies out of the race. “Only Bumi Armada meets ONGC’s strict tender conditions,” says a disgruntled industry source.

“Neither Mercator nor M3nergy owns or operates two FPSOs, each of 50,000 deadweight tonnes, so both will be disqualified.” Another source suspects that M3nergy was asked by Bumi Armada to bid “so the situation of a single bidder does not arise.

” Calls are growing for ONGC to scrap and re-issue the tender to avoid favouritism allegations “as there is just one qualified bidder (Bumi Armada).”