Oil and Gas Development Company Limited (OGDCL) on Friday finally cancelled the tender for a $186 million engineering, procurement and construction contract for Uch-II development project.
In this regard, OGDCL has sent letters to the bidders including Specialty Process Equipment Corporation, Press Descon and Petrosin. Press Descon had offered a bid of $275 million, Specialty Process $227 million and Petrosin $186 million, the lowest bidder.
OGDCL made the announcement after Islamabad civil court on Friday vacated a stay order on the Uch-II oil and gas extraction project which Petrosin had obtained against its partner China Liaoning International Economic and Technical Cooperation Group Corp Limited (CLIC), which had revoked the joint venture agreement on Uch-II and Kunner Pasakhi Deep (KPD) development projects.
OGDCL spokesman Bisharat Mirza confirmed that the company had informed the three bidders about scrapping of the tender after the court vacated the stay order. The court had stopped the parties from taking any adverse action against Petrosin till the decision, saying Petrosin had filed a petition against its partner that had revoked the agreement. “Now the stay order has been vacated and judgment has been reserved,” he added.
The OGDCL board of directors in a meeting held on April 27 had decided to cancel the tender due to a dispute between partners of the lowest bidder. The board also approved a plan under which OGDCL will execute the project with involvement of entities like Enar and Sui Northern Gas Pipelines (SNGPL).
Enar will be asked to provide engineering services while SNGPL will be engaged in construction work.
The development of Uch-II and Kunner Pasakhi Deep integrated projects has been delayed for years, due to monopoly of some powerful groups, leading to an energy crisis in the country.
Published in The Express Tribune, May 7th, 2011.
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