State-run Oil and Natural Gas Corporation (ONGC) clarified its recent decision to cancel a tender for hiring jack-up rigs was due to concerns over pricing anomalies and potential collusive bidding. The company emphasized its commitment to transparency, fairness, and healthy competition in public procurement processes. ONGC highlighted the importance of genuinely competitive bids and the discouragement of unfair trade practices like predatory pricing.
The evaluation of the tender revealed a significant 60% increase in pricing levels within nine months, from $35,606 to $56,195 in day rates. ONGC deemed this rise as beyond reasonable market behavior. The company expressed concerns over possible collusive practices based on bid patterns and global conditions, leading to the cancellation of the tender to safeguard organizational interests.
ONGC reiterated that the decision aimed to protect public funds, maintain procurement integrity, and ensure competitive integrity. The company emphasized that the cancellation was solely based on pricing reasonableness and adherence to procurement norms. ONGC affirmed its commitment to transparent industry engagement, fair competition, and measures to prevent cartelization in procurement processes.
