In a parallel development, Dutch engineering firm Fluordaniel has been awarded the front end engineering design (FEED) contract for the same project.

The agreement regarding the advisory contract was signed by officials of SocGen and the Total-Tata combine in Paris on Monday, sources told PTI.The other contenders for the prestigious contract included Chase Manhattan Bank of the US, ABN Amro of the Netherlands and Credit Lyonnais, also of France.

The Trombay project, a 50:50 joint venture between Tata Electric Company (TEC) and Total Gas and Power, involves the construction of a six million tonnes per annum LNG import terminal.

The negotiations for the selection of the financial advisors were carried out in Paris and the local arms of either Total or SocGenwere not involved, according to the sources.

The advisors would sketch out the entire financial strategy for the project as well as coordinate various economic aspects like tax details. SocGen was most likely to be among the lead fund arrangers for the project as well, the sources said. The project, cleared by the FIPB in January last, would be executed in two phases. The first phase of three mtpa would cost around $350 million.

The project would have a 65:35 debt equity profile. The equity base would work out to around Rs 850 crore. Total has already brought its Rs 425 crore share.

The terminal would supply about 0.8 million tonnes of natural gas to TEC's Trombay power plant.

The promoters would award the EPC contract for the project towards the end of 1999 through the international competitive bidding (ICB) route, according to the sources. LNG for the project would be sourced from the middle east, where the French petroleum giant has major equity stakes in a number of gas producing ventures.Totalhas the second largest upstream presence in the Gulf after the Anglo-Dutch behemoth Royal Dutch/Shell, with interests in Abu Dhabi, Qatar, Oman and Yemen.