ONGC rejects Essar's low bid for one of two C Series jobs

By Nishant Ugal

 07 February 2013 23:59 GMT

INDIA’S Oil & Natural Gas Corporation (ONGC) has disqualified low bidder Essar from one of two key tenders for its C Series offshore project, although the state-owned operator is believed to be in negotiations with the low bidder for the second job, writes Nishant Ugal.

Domestic contractor Essar last month emerged as the lowest bidder for four wellhead platforms for the C Series development. Essar and partner Saipem of Italy bid $94.9 million. However, ONGC later decided to reject this bid.

Sources claim that Essar’s bid was rejected as there were some issues relating to the service tax component.

“We are hearing that Essar’s bid has been rejected and ONGC has now asked the second lowest bidder Larsen & Toubro (L&T) to match the low bid,” one source said.

Another source said it is still unclear if L&T would…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index