ONGC Cancels Rig Tender, Alleging "Collusive" Bidding Practices
Indian state oil company ONGC has canceled a tender for four jackup rigs, alleging anticompetitive practices and an "unusually steep escalation" of prices offered.
ONGC said that rates had jumped from about $35,000 per day to about $56,000 within the span of nine months. The company said that it was not just a price movement determined by global market factors, but also a sign of possible "collusive practices" among bidders.
"The organization identified pricing escalation patterns that deviated substantially from reasonable market behaviour, forcing a critical decision point that would impact both immediate procurement outcomes and broader industry integrity standards," ONGC said in a statement.
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The company did not say whether it would launch a rebid process to attempt to find better-priced options. In its statement, it emphasized "adherence to established public procurement principles" like transparency and competition.
ONGC has canceled tenders and contracts with a high degree of publicity before. Last year, the state company reportedly canceled a $100 million tender for engineering work on a project to replace 24 legacy wellhead platforms in shallow waters off the western coast. It was its largest contract of 2025, according to Upstream. Earlier in the year, the company denied media reports that it had canceled a big contract with BP for the revamp of its Mumbai High offshore oil field. In 2024, it canceled a tender for another four jackups.
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