A time-bomb is ticking away under a drilling platform at Bombay High. The Oil and Natural Gas Corporation (ONGC) stands to lose 50 trained mebers of staff and assets worth $1 billion if it explodes.
ONGC is well aware of the impending disaster, but must pay a heavy price to have it defused. Foreign consultants are demanding $13.5 million more to do the job over estimates prepared by Engineers India Ltd.
In 1982, three turbo generators of 15mw each were installed at the BHS/SLQ platform at Bombay High. The capacity of all three generators has been considerably reduced due to design, engineering and constructional problems, necessitating a major revamp.
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The ONGC realises that a revamp of the system is unavoidable as the units cannot be operated to meet design capacity and they are unsafe during operations since the turbo generator doors are kept open because of poor ventilation systems, which is a clear fire prone methodology against all norms of turbine operation.
Experts say that just one spark from the generators is enough to blow up the place.
In response to an ONGC global tender for the revamp, only five consultants purchased bid documents, of which only two Kvaerner Energy of the UK, and Energy Services of the US submitted bids.
While Kvaerner quoted a price of $39.42 million, Energy Services bid $50.67 million. In contrast, EIL estimates for the revamp stand at $25.88 million.
Ironically, while most top ONGC officials are aware of the magnitude of the likely catastrophe, they express helplessness in awarding the contract at a higher price to that recommended by Engineers India Ltd.
The officials said that calling for new tenders will not help much since, like before, Kvaerner and Energy Services may again be the only bidders and they may well quote the same prices.
This is a classic case of penny wise, pound foolish. While ONGC is busy saving around $13.5 million in the revamping cost, it might lose $1 billion and 50 lives in case there is an explosion at the site, said an ONGC official on condition of anonymity.