Sudhir Vasudeva, Chairman and Managing Director of the state-run oil explorer ONGC informed that the firm plans to invest about Rs 86,862 crore on 44 mega projects during 2012-17.
He also said that the planned capacity addition of the firm's Mangalore Refinery and Petrochemicals will come about in the present Plan period.
ONGC aims to raise the capacity of the Mangalore unit from the present 15 million tonne to 18 million tonne under the its perspective plan 2030.
Talking about the 44 mega projects, Vasudeva said 16 would be on-land projects and 28 offshore. Most of the projects are lump-sum turnkey contracts (LSTK), he added.
He feels that LSTK is not the most efficient although it is an easy way of awarding contracts. The company, therefore, explores other ways to award such contracts. One of the ways is the ‘open book’ method for awarding contracts, a cheaper and more efficient route of executing a contract, he said.
In an open book contract, the company and contractor agree on the costs that are remunerable and the margin that can be added in the contract.
ONGC has about 250 on-land installations, about 220 offshore platforms, over 5,500 km of submarine pipelines and over 15,000 km of on-land pipelines. Most of these were constructed many years ago and they are up renewal.