McDermott-led consortium wins ONGC contract

MUMBAI, December 4, 2015 – US engineering, procurement and construction giant McDermott International and Indian multinational Larsen & Toubro won contracts to work on two developments owned by state-owned Oil and Natural Gas Corporation (ONGC). The contract, worth around $350 million, will see the two companies install subsea structures at the Vashishta and S1 fields, located offshore India’s east coast.

While neither of the companies involved have publicly announced information on the winning bidders, oil and gas publication Upstream Online has verified the deal through “three sources closely associated with the tender process.” According to an Upstream report last week, the lowest bidder for the contract was a consortium of McDermott and Larsen & Toubro, which submitted a bid of $366 million.

The Vashishta field sits at a water depth of 500-700 metres and holds an estimated 12.9 bcm (456 bcf) of gas. At a depth of 250-300 metres, the S1 field contains about 8.3 bcm (293 bcf) of gas.

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