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Oil and Natural Gas Corp (ONGC) has awarded a contract worth Rs 11,740.86 crores for development of its mega KG-D5 oil and gas fields to an alliance of Baker Hughes, McDermott International and L&T Hydrocarbon Engineering.
Larsen & Toubro (L&T) said in a BSE filing that its subsidiary L&T Hydrocarbon Engineering (LTHE) in a consortium has bagged a subsea contract from ONGC for development of block DWN-98/2 in the Krishna Godavari basin. The award represents the largest single subsea contract awarded by ONGC.
ONGC said in a statement that the consortium was awarded the subsea production system (SPS) including 34 deepwater trees, and the installation of subsea umbilicals, risers and flowlines (SURF) at the water depth of between 300 metres and 3,200 metres.
ONGC said, “This tender is one of the biggest integrated (SPS + SURF) tenders awarded globally in recent years.” “This will help eliminate major interface issues among SPS and SURF packages, resulting in time and cost optimisation to the company,” the company added.
The statement also said, “ONGC envisages commencement of first gas production by December 2019, first oil by March 2021 and overall project completion by August 2021.”
Baker Hughes and McDermott also released a statement, which said, “The group will offer a comprehensive solution that will also boost local manufacturing, in support of Make in India.”
