ONGC will benefit most if it can do bulk of its KG-DWN-98/2 contracting this year
An analysis of the supply chain cost curves shows that ONGC, provided it is astute enough not to keep out the competition in its KG-DWN-98/2 development by insisting on archaic tender condtions , will benefit the most if can conduct the bulk of its contracting for the development within the current year.
The fall in prices continues in 2017 across all supply chain components but begins to recover in 2018
An investigation by this website shows that the company is trying to keep most of the bigger E&P supply.
chain providers in play for its big SPS-SURF and FPSO contracts by being flexible with its tender conditions. RIL too has begun negotiating at the right moment for long lead items for the R-Series Development. FID is likely on a number of RIL’s offshore discoveries and the thinking process inside the company is to try and fix the future prices of some of its outstanding development programmes in the current year itself by taking advantage of low costs. If these decisions are spread out to 2018 and 2019, the company will be unable to take full advantage of prevailing low prices. The contracts department in RIL is likely to be in over active mode this year and a spate of RFQs are likely.
Source: Indian PetroPlus