Sudhir Vasudeva, Chairman and Managing Director of ONGC informed that the state-run oil and gas explorer would execute 44 mega projects worth about Rs 86,862 crore between 2012-17.
Of these projects, 16 would be on-land projects and 28 offshore. Most of the projects are lump-sum turnkey contracts (LSTK).
The company 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.
The maintenance and renewal of these huge installations at logistically challenging locations itself requires contractors to possess unique project management skills and innovative EPC management.
Given that LSTK is not the most efficient model, the company is looking at 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.
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.
Under the ONGCÂ’s perspective plan 2030, the company wants to increase the capacity of the Mangalore Refinery and Petrochemicals from the present 15 million tonne to 18 million tonne. This capacity addition will come about in the present Plan period.
Leave a Reply
You must be logged in to post a comment.