NEW DELHI — Oil and Natural Gas Corporation (ONGC) has officially addressed the cancellation of its recent tender for jack-up rigs, citing an “unusually steep” price hike and suspicious bidding patterns that suggested potential collusion among participants.
The clarification follows media reports questioning the state-run major’s procurement decisions.
Suspicious Price Escalation
During the evaluation process, ONGC observed a massive surge in day rates that defied market logic:
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The Hike: Rates jumped from USD 35,606 to USD 56,195 in just nine months—a 60% escalation.
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The Verdict: The organization deemed this increase beyond the bounds of reasonable competitive behavior, raising red flags regarding predatory pricing and cartelization.
Upholding Procurement Integrity
As a public sector enterprise, ONGC emphasized its duty to safeguard public funds and maintain market transparency.
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Anti-Collusion Stance: The decision to scrap the tender was made to discourage unfair trade practices and “coordinated actions aimed at distorting market dynamics.”
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Commitment to Fairness: ONGC reiterated that the cancellation was based strictly on pricing reasonableness and alignment with global norms, free from any “extraneous influence.”
Moving forward, ONGC stated it remains committed to engaging with the industry but will continue to take firm measures to prevent cartelization and preserve the sanctity of its bidding process.
