State-owned Oil and Natural Gas Corporation (ONGC) has cancelled the bids obtained for its Daman upside gas growth mission off the western coast on account of excessive worth quotes, sources stated.
Photograph: Amit Dave/Reuters
The mission is essential to ONGC’s technique of ramping up gas manufacturing from its shallow-water fields off India’s west coast.
Once accomplished, the mission would result in almost doubling of present gas manufacturing of 4-5 million customary cubic metres per day.
Sources conscious of the matter stated the bids ONGC obtained for the mission had been method larger than the corporate’s inside 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 had been opened in December final 12 months.
It quoted a price of $663.77 million to construct the infrastructure wanted to ramp up manufacturing from the field 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 $801.90 million.
Vietnam’s PTSC and Abu Dhabi’s National Petroleum Construction Company (NPCC) had 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 $663.37 million was 36.77 per cent larger than ONGC’s revised inside estimate of $485.03 million.
L&T supplied a $1 million low cost however this was not acceptable to ONGC, they stated, including that ONGC might have tolerated a most variation of 20 per cent over the inner worth estimate.
Daman upside gas growth mission envisaged constructing 4 new wellhead platforms, seven infield pipelines, a brand new course of gas compressor module and the addition of low-pressure compression on the current course of platform. It additionally consists of topsides modifications at current wellhead platforms.
The mission has been within the works for years however has been delayed on a number of events on account of unfavourable gas pricing.
But an increase in home gas costs turned across the mission’s industrial viability.
ONGC has been producing pure gas from Daman since 2016 and has spent an estimated $1 billion on offshore infrastructure on the field over the previous 5 to 6 years.
The mission to boost manufacturing concerned constructing infrastructure that would additionally deal with gas from neighbouring B-12 and C-24 marginal fields.
India’s home crude oil and pure gas manufacturing has been dwindling lately and ONGC is below rising stress from the federal government to spice up its output and reverse the declining pattern.
Projects like Daman are essential for assembly these goals however the scrapping of the tender would add to the delay in boosting output.
