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ONGC Cancels Jack-Up Rig Tender on Pricing Anomalies and Suspected Collusion

ONGC says a 60% jump in rig day rates signaled possible collusion.

Overview

  • ONGC said it called off a jack-up rig tender after its review found day rates had jumped about 60% in nine months, from $35,606 to $56,195, and bid patterns raised red flags about collusion.
  • The state-run producer said the move protects public funds and keeps its procurement clean, and it pledged to keep bids transparent and to act against cartel-like behavior.
  • Business Today reported that ONGC has recently scrapped four tenders covering 15 jack-up rigs, including some after receiving price bids and one before submission.
  • The cancellations land as India tries to boost offshore drilling with a tight global rig market and aging domestic fleets, and some operators are now wary of bidding here.
  • Business Today also noted a separate five-year, roughly $20 billion tender issued in February under the Samudra Manthan Mission with an 80-day mobilization target, a push that could now face delays if fewer rigs stay on offer.