+
ONGC Cancels Bids for Daman Gas Project
POWER & RENEWABLE ENERGY

ONGC Cancels Bids for Daman Gas Project

State-run Oil and Natural Gas Corporation (ONGC) has abandoned the tenders for its Daman upside gas project off the west coast of India due to bids being too high, according to insiders.

ONGC was seeking to expand its gas production from its shallow-water fields and the Daman project would have almost doubled its daily gas production to 4-5 million standard cubic metres.

Bids for the tender were reportedly much higher than ONGC's internal estimates, so the tender has been cancelled. ONGC will break up the project into separate packages and re-tender.

Larsen & Toubro emerged as the lowest bidder in December 2021 with a quote of $663.77m to build the necessary infrastructure for the project. However, sources said the quote was 36.77% higher than ONGC's revised internal estimate of $485.03m.

While L&T offered a $1m discount, ONGC found the cost too high, indicating that it was willing to tolerate a maximum variation of 20% above the internal price estimate.

The Daman project involves constructing four wellhead platforms, seven infield pipelines, a gas compressor module, and the addition of low-pressure compression to the existing process platform. It also includes topsides modifications to the existing wellhead platforms.

The Daman project has been in the works for several years but has been delayed by unfavourable gas pricing. However, the rise in domestic gas prices has made the project commercially viable.

ONGC has been producing natural gas from Daman since 2016 and has invested roughly $1bn in offshore infrastructure at the field over the last five to six years.

The Daman project was also set to increase production from the B-12 and C-24 fields, and the cancellation of the tender will lead to further delays in the output increase that the government is pressuring ONGC to deliver.

Also Read
Mumbai to build Bowstring Bridge to connect coastal road
Railways approves ROB for Habibganj-AIIMS link

State-run Oil and Natural Gas Corporation (ONGC) has abandoned the tenders for its Daman upside gas project off the west coast of India due to bids being too high, according to insiders. ONGC was seeking to expand its gas production from its shallow-water fields and the Daman project would have almost doubled its daily gas production to 4-5 million standard cubic metres. Bids for the tender were reportedly much higher than ONGC's internal estimates, so the tender has been cancelled. ONGC will break up the project into separate packages and re-tender. Larsen & Toubro emerged as the lowest bidder in December 2021 with a quote of $663.77m to build the necessary infrastructure for the project. However, sources said the quote was 36.77% higher than ONGC's revised internal estimate of $485.03m. While L&T offered a $1m discount, ONGC found the cost too high, indicating that it was willing to tolerate a maximum variation of 20% above the internal price estimate. The Daman project involves constructing four wellhead platforms, seven infield pipelines, a gas compressor module, and the addition of low-pressure compression to the existing process platform. It also includes topsides modifications to the existing wellhead platforms. The Daman project has been in the works for several years but has been delayed by unfavourable gas pricing. However, the rise in domestic gas prices has made the project commercially viable. ONGC has been producing natural gas from Daman since 2016 and has invested roughly $1bn in offshore infrastructure at the field over the last five to six years. The Daman project was also set to increase production from the B-12 and C-24 fields, and the cancellation of the tender will lead to further delays in the output increase that the government is pressuring ONGC to deliver. Also Read Mumbai to build Bowstring Bridge to connect coastal road Railways approves ROB for Habibganj-AIIMS link

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code