Ramunia Holdings Berhad announced that its wholly owned subsidiaries Ramunia International Services Limited (RISL) and Ramunia Fabricators Sdn Bhd's (RFSB) had on the evening of May 16, 2008 received a notification from ONGC confirming that the bid security amount of U.S. $500,000 is forfeited and the contract is terminated on the purported ground that the Company was unable to provide the performance bank guarantee and insurance certificate by May 15, 2008.
In January 2008, ONGC awarded Ramunia a $685 million contract for the design, procurement, construction and installation of the export pipeline for the B-193 field offshore India. Located in 60-75 meters of water, the field is in the Heera-Panna-Bassein block of the Bombay offshore basin.
The Company wishes to inform that it had earlier sought for an extension of time until May 31, 2008 to provide the performance bank guarantee and insurance certificate. One of the reasons for the extension was to finalize the schedule and cost of additional works for Gas Sweetening Unit that were not specified in the original contract documents between the Company and ONGC. These additional works involving long lead items, would have both a substantial impact on the overall completion date and a substantial increase of value from the original contract sum.
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