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

Next Story
Real Estate

Ashwin Sheth Group Launches ‘The Pink Perk’ to Empower Women Homebuyers

Ashwin Sheth Group has introduced ‘The Pink Perk’, a special initiative for Women’s Month, offering a 3 per cent saving for women homebuyers (T&C apply) across all its Mumbai projects. The offer is valid until 31 March 2025.The campaign challenges the Pink Tax, where women often pay more for similar products and services. With The Pink Perk, Ashwin Sheth Group flips the script, providing an exclusive financial advantage to women taking charge of their homeownership journey.Bhavik Bhandari, Chief Sales and Marketing Officer, Ashwin Sheth Group, stated: “The Pink Perk is our way of c..

Next Story
Infrastructure Transport

Shipping Ministry Aims to Complete 150 Projects by September 2025

The Ministry of Ports, Shipping and Waterways (MoPSW) organised a two-day ‘Chintan Shivir, 2025’ in Srinagar with a vision to evaluate, reset, discover and apply solutions to unlock potential of the Blue Economy of India. Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal reviewed undergoing projects of the Ministry — worth Rs 2 Trillion — and drew up a goal, after consultative deliberation with the experts, of completing at least 150 projects by September, 2025. The event focused on strengthening India’s shipbuilding and repair capabilities, improving financial and..

Next Story
Infrastructure Urban

NHRC Concludes 2nd ITEC Program on Human Rights for Global South NHRIs

The 2nd six-day ITEC Executive Capacity Building Programme on Human Rights for senior functionaries of the National Human Rights Institutions (NHRIs) of Global South organised by the National Human Rights Commission (NHRC), India in partnership with the Ministry of External Affairs, successfully concluded. The valedictory session was addressed by the NHRC, India Chairperson, Justice V Ramasubramanian in the presence of Members Justice (Dr) Bidyut Ranjan Sarangi, Vijaya Bharathi Sayani & Secretary General, Bharat Lal. The programme, which began on Monday 3rd March, 2025, witnessed participatio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?