New Delhi: Oil and Natural Gas Corporation (ONGC) has issued a detailed clarification regarding the cancellation of its recent tender for hiring jack-up rigs, following reports in a business daily.
The public sector energy major stated that the decision was taken after identifying serious concerns related to pricing trends and bidding patterns, which raised red flags about fair competition.
Commitment to Transparent Procurement
Oil and Natural Gas Corporation emphasised that all its procurement activities strictly adhere to established public procurement principles, focusing on transparency, fairness, and competitive integrity.
The company reiterated that it expects bidders to submit genuine and competitive offers, while discouraging practices such as predatory pricing, collusive bidding, or any coordinated effort that may distort market dynamics.
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Sharp Price Escalation Raised Red Flags
During the evaluation of the jack-up rig tender, ONGC observed a steep increase of nearly 60% in pricing within a span of about nine months.
The day rate rose sharply from USD 35,606 to USD 56,195—an escalation that was considered significantly beyond reasonable market behaviour.
When assessed alongside the overall bid patterns and prevailing global conditions, the pricing trend raised legitimate concerns about potential collusive practices among bidders.
Decision Taken to Safeguard Public Interest
ONGC stated that, as a responsible public sector procurer, it was duty-bound to examine such anomalies.
The decision to cancel the tender was taken to safeguard organisational interests, ensure prudent utilisation of public funds, and uphold the integrity of the procurement process.
The company clarified that the move was based purely on pricing reasonableness and adherence to procurement norms, without any external influence.
Focus on Fair Competition and Market Integrity
Oil and Natural Gas Corporation reiterated its commitment to maintaining a transparent and constructive engagement with industry stakeholders.
It also emphasised its resolve to prevent cartelisation and ensure that procurement processes remain fair and competitive.
Encouraging Responsible Participation
The PSU has urged prospective bidders to participate responsibly and competitively in future tenders, while adhering to ethical practices.
ONGC underscored that preserving the sanctity of procurement processes remains a top priority as it continues to engage with the industry.
About ONGC
Oil and Natural Gas Corporation (ONGC), a leading Public Sector Undertaking (PSU) in India, is the country’s top exploration and production company, committed to sustainable energy practices, innovation, and operational excellence. With a strong focus on health, safety, and environmental standards, ONGC continues to set benchmarks in India’s energy sector.
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