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L&T scoops Daman prize

Contractor to complete works started by beleaguered Swiber

Indian contractor Larsen & Toubro has, as expected, bagged the transportation and installation contract for state-owned Oil & Natural Gas Corporation’s Daman offshore field development and intends to bid for further work expected to be offered soon by ONGC.

L&T scooped the Daman contract worth 1150 crore rupees (US$176.6 million) just weeks after the operator opened its sole price bid.

The T&I workscope had attracted international competition however the remaining such rival – Malaysia’s Sapura Energy – had its bid disqualified, Upstream reported on 30 August.

A contract was awarded two years ago to Singapore-based offshore contractor Swiber but the company could not complete the work after being placed under judicial review in 2016.

ONGC subsequently re-tendered, offering a contract covering the transportation, installation and commissioning of pre-fabricated piles and conductors, plus several wellhead platforms fabricated by Vietnam's PTSC.

The contract also involves some unfinished work including platform modifications and procurement of some pipeline sections from the Swiber contract.

L&T expects its work to be completed by April 2018, one month before a second phase of the Daman project in the Tapti-Daman block in the Mumbai Offshore area is likely to be finished.

The contractor’s current order book reportedly stands at more than 20,000 crore rupees with 65% of the work coming from international projects, mostly in the Middle East.

However, L&T already has its sights on at least three upcoming contracts for ONGC projects off India’s west coast that it expects the operator to launch in this financial year.

The Daman gas development is targeting initial production of between 2 million and 3 million cubic metres per day of gas with a further 3 MMcmd coming on stream from phase two.

ONGC is looking to ultimately ramp up gas output from Daman to 8 MMcmd by 2020.