Hyundai wins subsea ONGC contract, despite previous clashes

Despite previous clashes in the past, India's Oil and Natural Gas Co (ONGC) have offered South Korea's Hyundai Heavy Industries Co Ltd the US$600 million contract to construct the Mumbai-Uran-Trunk (MUT) Submarine Pipeline Project.

The two firms have clashed many times - often in the courts - in the recent past over contracts and contract details.

Under the terms of the agreement, the South Korean firm will construct a 506 km oil pipeline system in the Arabian Sea off the coast of Mumbai on a turnkey basis.

Hyundai will have to cover all aspects of design, engineering, procurement, fabrication, coating, installation and trenching and burial and hydro-testing and pre-commissioning of the large submarine pipeline system. It will also upgrade and modify six platform facilities and the Onshore Uran Terminal.

All in all - and not counting the platforms and the terminal - the project consists of 30 oil trunk lines, 28 gas trunk lines and seven small-sized feeder lines, which must all be completed - pipelines, terminals and all - by May 2005.

According to ONGC, the new MUT will replace the current MUT pipeline, which has been in operation for the past 25 years.