Engineering and fabrication contractor Larsen & Toubro (L&T) emerged because the lowest bidder when the bids have been opened in December final yr. (Representative picture)
The bids ONGC acquired for the undertaking have been manner greater than the corporate’s inner estimates and so the tender has been cancelled, says report
State-owned Oil and Natural Gas Corporation (ONGC) has cancelled the bids acquired for its Daman upside fuel growth undertaking off the western coast because of excessive value quotes, sources stated. The undertaking is essential to ONGC’s technique of ramping up fuel manufacturing from its shallow-water fields off India’s west coast. Once accomplished, the undertaking would result in a virtually doubling of present fuel manufacturing of 4-5 million commonplace cubic metres per day.
Sources conscious of the matter stated the bids ONGC acquired for the undertaking have been manner greater than the corporate’s inner estimates and so the tender has been cancelled. The tender would now be divided into separate packages and rebid.
Engineering and fabrication contractor Larsen & Toubro (L&T) emerged because the lowest bidder when the bids have been opened in December final yr. It quoted a value of USD 663.77 million to construct the infrastructure wanted to ramp up manufacturing from the sector that lies about 60 kilometers off the west coast.
A consortium of Afcons and Indonesia’s Gunanusa Utama Fabricators emerged a distant second within the bidding, quoting near USD 801.90 million. Vietnam’s PTSC and Abu Dhabi’s National Petroleum Construction Company (NPCC) have been additionally amongst these initially chasing the contract, however didn’t take part within the bid course of.
Sources stated L&T’s quote of USD 663.37 million was 36.77 per cent greater than ONGC’s revised inner estimate of USD 485.03 million.
L&T supplied a USD 1 million low cost however this was not acceptable to ONGC, they stated, including that ONGC may have tolerated a most variation of 20 per cent over the inner value estimate.
Daman upside fuel growth undertaking envisaged constructing 4 new wellhead platforms, seven infield pipelines, a brand new course of fuel compressor module and the addition of low-pressure compression on the present course of platform. It additionally contains topsides modifications at present wellhead platforms.
The undertaking has been within the works for years however has been delayed on a number of events because of unfavourable fuel pricing. But an increase in home fuel costs turned across the undertaking’s business viability.
ONGC has been producing pure fuel from Daman since 2016 and has spent an estimated USD 1 billion on offshore infrastructure on the area over the previous 5 to 6 years.
The undertaking to boost manufacturing concerned constructing infrastructure that might additionally deal with fuel from neighbouring B-12 and C-24 marginal fields.
India’s home crude oil and pure fuel manufacturing has been dwindling lately and ONGC is beneath growing strain from the federal government to spice up its output and reverse the declining development.
Projects like Daman are essential for assembly these goals however the scrapping of the tender would add to the delay in boosting output.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed)
