India’s ONGC awards $1.5bn contract for deep-water development

5 October 2018 (Last Updated October 5th, 2018 12:30)

India’s Oil & Natural Gas Corporation (ONGC) has awarded a Rs117.4bn ($1.52bn) contract to Baker Hughes (BHGE), McDermott and L&T Hydrocarbon (LTHE) for the deep-water development project, KG-DWN-98/2 (Cluster-2) in the Krishna Godavari basin.

India’s ONGC awards $1.5bn contract for deep-water development
The project is to help India cater to its domestic energy requirement. Credit: Andy Rusch.

India’s Oil & Natural Gas Corporation (ONGC) has awarded a Rs117.4bn ($1.52bn) contract to Baker Hughes (BHGE), McDermott and L&T Hydrocarbon (LTHE) for the deep-water development project, KG-DWN-98/2 (Cluster-2) in the Krishna Godavari basin.

This contract will see subsea equipment and services being provided by BHGE, McDermott and LTHE to ONGC with end-to-end project delivery.

The deep-water development project will help India cater to its domestic energy requirement.

Under the integrated subsea package, subsea production systems (SPS) will be supplied, including 34 deep-water trees, in addition to installation of subsea umbilicals, risers and flowlines (SURF) at a water depth of between 984ft and 10,500ft.

BHGE will be responsible for supplying all of the subsea hardware as well as pre-commissioning services.

It will be responsible for subsea hardware including trees, manifolds, controls, connection systems, SPS installation tools and services, as well as flexible risers and flowlines, umbilical and topside controls.

“Built on a unique successful partnership model with McDermott and LTHE, the project will deliver leading technologies to ONGC across a full subsea scope.”

BHGE will also offer pre-commissioning services for other phases of the project.

McDermott will provide its specialised fleet of pipelay and construction vessels and engineering, procurement, construction and installation capabilities.

McDermott will transport and install SURF and SPS facilities using its engineering and other key resources in Kuala Lumpur, Malaysia and Chennai city of India in addition to installation assets of Derrick Barge 30, Lay Vessel North Ocean 105 and Lay Vessel 108.

BHGE oilfield equipment president and CEO Neil Saunders said: “The award represents an important milestone in support of ONGC and India’s commitment to help reach its energy potential. Built on a unique successful partnership model with McDermott and LTHE, the project will deliver leading technologies to ONGC across a full subsea scope.

“As the industry moves toward greater collaboration across the value chain, we believe our technology and our unique commercial models are well-positioned to meet demand for future subsea projects.”

LTHE and BHGE will manufacture manifolds for the first time in India as part of this project.

Delivery for the subsea contract is expected to start in 2020 for the gas system and 2021 for the oil system.