Upstream giant ONGC will be executing 44 mega projects in the current Plan period, at an investment of about Rs 86,862 crore, said Sudhir Vasudeva, Chairman and Managing Director, on Tuesday at an event in Mumbai.

Vasudeva said that of the mega projects, 16 would be on-land projects and 28 offshore. Most of the projects are lump-sum turnkey contracts (LSTK).

Although the LSTK is an easy way of awarding contracts, it is not the most efficient. 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, 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.

New opportunities

Vasudeva said 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, he said.

He added that under the ONGC’s perspective plan 2030, the company wants to increase the capacity of the Mangalore Refinery and Petrochemicals from the present 15 million tonnes to 18 million tonnes. This capacity addition will come about in the present Plan period.

rahul.wadke@thehindu.co.in

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