Alpha Geo bids lowest in ONGC seismic tender

Vol 19, PW 1 (10 Sep 15) Exploration & Production

Alpha Geo is having a run of good luck.

Not only has it won a $3m contract to shoot 2D in Myanmar for Luxembourg’s CAOG, announced to the BSE on September 2, but PETROWATCH learns the Hyderabad-based seismic contractor is lowest bidder in ONGC’s tender to shoot 2010-sq km ‘full fold’ 3D in Andhra Pradesh’s onland Vygreswaram area. Alpha Geo, which saw its share price rocket from Rs268 ($4) on August 24 to Rs410.20 ($62) on September 3, quoted Rs242.41cr ($36.5m) including service tax to walk away with the Vygreswaram contract after ONGC opened price bids on August 28.

Some find it strange Alpha’s quote was only Rs3cr ($452,000) lower than second-ranked Advent Oilfield Services which quoted Rs245.48cr ($37m). "I’ve never seen this before," says an industry source.

"A difference of Rs20-25cr ($3-$3.7m) between L1 and L2 is not unusual but just Rs3cr is a remarkable coincidence." IOT Infrastructure and Energy Services ranked third with Rs337.43cr ($51m) while Geofizyka Torun ranked fourth quoting Rs616cr ($93m).

Asian Oilfield was disqualified because of a mistake submitting its bid. Others ask if ONGC was wise to ask for fresh offers after Alpha Geo was the only qualified bidder in the last version of the tender in September 2014.

After wasting a year ONGC has saved just Rs7cr ($1m). ONGC accepted technical and price bids in the new tender on July 21.