ONGC Cancels Tender for Jack-Up Rigs Due to Pricing Concerns
ONGC's Decision to Cancel Tender
Photo: IANS
New Delhi, April 22: The Oil and Natural Gas Corporation (ONGC), a state-owned enterprise, announced on Wednesday that it has decided to cancel a recent tender for the hiring of jack-up rigs. This decision was prompted by concerns regarding pricing discrepancies and the possibility of collusive bidding practices.
This clarification was issued following a media report that questioned the cancellation of the tender.
ONGC emphasized its commitment to public procurement standards, prioritizing transparency, fairness, and the encouragement of healthy competition.
The company noted that all bidders are expected to present genuinely competitive offers, and any unfair practices, such as predatory pricing or collusion, are strictly prohibited.
Upon reviewing the tender, ONGC observed a significant price increase of approximately 60%, with daily rates soaring from ₹606 to ₹1,195 in just nine months. This surge was deemed excessive and not reflective of competitive market behavior.
Furthermore, ONGC expressed concerns about the overall bidding patterns and current global market conditions, which raised suspicions of potential collusion.
"As a responsible public entity, ONGC felt it necessary to investigate these issues, leading to the cancellation of the tender," the company stated.
ONGC reiterated that this action was taken to protect its organizational interests, ensure the judicious use of public funds, and uphold the integrity of the procurement process. The decision was made solely based on the reasonableness of pricing, competitive integrity, and compliance with procurement regulations, free from external pressures.
The company remains dedicated to maintaining transparent interactions with the industry and will continue to promote fair competition while implementing measures to prevent cartel behavior and uphold the integrity of its procurement processes.
On the stock market, ONGC shares rose by 0.68% on Wednesday, reaching an intraday peak of ₹285.05 on the NSE by 11:40 A.M.