ONGC broadband seismic doubts

Vol 17, PW 11 (16 Jan 14) News in Brief

CGGVeritas was lowest bidder in an ONGC tender to shoot 2000-sq km broadband 3D but it shouldn't celebrate yet.

Contractors believe ONGC might re-tender as the prices quoted were around 30% higher than its internal estimate. “ONGC wanted to complete work by March this year,” says a source.

“This is impossible even if it awards the contract now so most likely it will re-tender.” When ONGC opened price bids on December 20, CGG quoted $67m ($222/lkm) and WesternGeco quoted $70m.

“Our quote is the right price for the work,” CGG says. When ONGC announced the tender it originally estimated $200m for a survey over 16,000-sq km, later cut-down to 4000-sq km and finally slashed to 2000-sq km.

PGS was shortlisted to bid, but was later disqualified as it offered Ramform Atlas, still under construction, which is not allowed under ONGC’s terms.