KUALA LUMPUR: Ramunia Holdings Bhd said yesterday its unit Ramunia Fabricators Sdn Bhd and its consortium partners have decided not to re-tender for a US$190 million (RM595 million) contract to build up to 10 well head platforms for India’s Oil and Natural Gas Corp Ltd (ONGC).
The consortium received a new invitation from ONGC to participate in a short re-tender of the project, and has decided not to go ahead, Ramunia said in a filing with Bursa Malaysia yesterday.
“The ONGC MoU shall be deemed terminated,” it said, without stating why it will not be re-tendering for the project.
Ramunia said in April that Ramunia Fabricators had signed a memorandum of understanding with SEW Infrastructure Ltd (India) and in July it announced that the Ramunia-SEW consortium was to bid for this job, which, if won, would have marked Ramunia’s re-entry into India after a two-year hiatus. The company was blacklisted by ONGC over issues with a US$685 million field development job in 2008. The two-year blacklist ended in May.
SEW is an Indian company involved in infrastructure development and construction in engineering, procurement and construction projects in dams, bridges, tunnels, power generation, transmission and distribution, water pipelines, roads and buildings.
Ramunia slipped into Practice Note 17 status last year after it sold its fabrication yard to Sime Darby Bhd’s energy and utilities division for RM530 million cash. Its regularisation plan to address this status involved a proposed capital reconstruction, rights issue and business rejuvenation plan.
Its business rejuvenation plan involved strategies to build up the group’s order book with major offshore fabrication works as well as other oil and gas-related business activities. Some saw the ONGC project as a way of lifting Ramunia out of PN 17 status.
This article appeared in The Edge Financial Daily, November 15, 2011.
The consortium received a new invitation from ONGC to participate in a short re-tender of the project, and has decided not to go ahead, Ramunia said in a filing with Bursa Malaysia yesterday.
“The ONGC MoU shall be deemed terminated,” it said, without stating why it will not be re-tendering for the project.
Ramunia said in April that Ramunia Fabricators had signed a memorandum of understanding with SEW Infrastructure Ltd (India) and in July it announced that the Ramunia-SEW consortium was to bid for this job, which, if won, would have marked Ramunia’s re-entry into India after a two-year hiatus. The company was blacklisted by ONGC over issues with a US$685 million field development job in 2008. The two-year blacklist ended in May.
SEW is an Indian company involved in infrastructure development and construction in engineering, procurement and construction projects in dams, bridges, tunnels, power generation, transmission and distribution, water pipelines, roads and buildings.
Ramunia slipped into Practice Note 17 status last year after it sold its fabrication yard to Sime Darby Bhd’s energy and utilities division for RM530 million cash. Its regularisation plan to address this status involved a proposed capital reconstruction, rights issue and business rejuvenation plan.
Its business rejuvenation plan involved strategies to build up the group’s order book with major offshore fabrication works as well as other oil and gas-related business activities. Some saw the ONGC project as a way of lifting Ramunia out of PN 17 status.
This article appeared in The Edge Financial Daily, November 15, 2011.
