India's ONGC in talks with SABIC for Dahej project

28 May 2007 09:17  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Oil and Natural Gas Corporation (ONGC) is in talks with Saudi Basic Industries Corp (SABIC) for its rupees (Rs) 136bn ($3.3bn/€2.5bn) dual-feed olefins complex in Dahej, Gujarat, a source close to the deal said on Monday.

 

“ONGC is in talks with SABIC and a few other firms for technical, financial and operational collaboration for the Dahej project,” the source told ICIS news.

 

The Indian firm also plans to appoint an equity advisor to push through with the talks for collaboration, the source said.

 

Construction for the project will start on 20 January 2008 and it would be completed within 40 months, the source said.

 

“Stone and Webster, ABB, EPP Samsung, L&T and a few other [South] Korean firms have submitted tenders for the lumpsum turnkey project,” he added.

 

The selected bidder will have to obtain statutory approval for the project, undertake engineering, procurement of equipment and construction of the entire complex and infrastructure.

 

The project will be implemented by an ONGC joint venture ONGC Petro-additions Ltd (OPaL), the other partner being Gujarat State Petroleum Corp (GSPC).

 

($1 = Rs40.52, €1 = Rs52.53)

By: Divya Chowdhury
+65 6780 4359

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