Baker Huges GE, McDermott, L&T team bag ONGC’s Rs. 11,740- cr contract.

ONGC has awarded an Rs. 11,740 crore contract for developing the Deep Water Project KG-DWN-98/2 (Cluster-2) in East Coast to a Consortium of Baker Huges GE, McDermott and L&T Hydrocarbon.

The consortium was awarded the subsea production system (SPS) including 34 deepwater trees, and the installation of subsea umbilicals, risers and flowlines (SURF) at water depth of between 300 metres and 3,200 metres, it said in a statement.

“ONGC took a strategic decision of integrating hitherto separate work packages of SPS and SURF into a single integrated (SPS + SURF) work package tender. This will help to eliminate major interface issues among SPS and SURF packages, resulting in time and cost optimisation to the company,” the statement added.

Baker Hughes will provide all of the subsea hardware and pre-commissioning services, while McDermott will bring its specialised fleet of construction vessels and engineering, procurement, installation capabilities, the two firms said in a separate statement.

ONGC expects to begin first gas production by December 2019, first oil by March 2021 and the overall project completion by August 2021. Total peak gas production rate from Cluster-2 is expected to be about 16 million standard cubic meters per day and peak oil production rate of 80,000 barrels per day.

HBL