Bid surprise sprung by Leighton in PRP-3 race

By NISHANT UGAL New Delhi

 07 June 2012 22:59 GMT

Leighton Welspun, owned by Australia’s Leighton and Indian entity Welspun, has emerged as the lowest bidder in Oil & Natural Gas Corporation’s (ONGC) pipeline replacement project-3 (PRP-3) off India’s west coast.

Leighton’s “surprisingly low” bid was $252.85 million and next in line was a consortium including South Korean Hyundai Heavy Industries and India’s Great Offshore, which quoted $299.6 million, said a source.

Middle East pipeline player Valentine Maritime was third in the race with a bid of $319 million, while Indian contractor Punj Lloyd bid $338 million and Singapore-based Swiber bid $399 million.

ONGC will soon award a letter of intent for the PRP-3 project.

The commercial bids have come as something of a shock, with sources earlier putting the job in the $500 million…

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