Quippo derails ONGC and Oil India 2D tenders

Vol 19, PW 8 (17 Dec 15) People & Policy
     

Quippo Oil & Gas has singlehandedly derailed two onland 2D tenders by filing a case against ONGC in the Delhi High Court.

PETROWATCH learns the court told Quippo on December 15 to return to ONGC's Independent External Monitors - a move that will inevitably delay ONGC from opening price bids in a tender to shoot, process and interpret 40,835-lkm of 2D across 11 sectors. Quippo confirms it first approached the IEMs on December 7 in protest at its (assumed) disqualification after ONGC failed to include it in its latest round of queries.

Under scrutiny is Quippo's 99.92% ownership by parent company SREI Infrastructure Finance. ONGC tender conditions say if a company is using the financial strength of its parent to support a bid then it must be a 100% subsidiary.

Quippo argues 99.92% is as good as 100% and when its merger with SREI happened in 2010 it was legally bound to give 0.08% to directors. Quippo's challenge has also derailed Oil India's tender to shoot 2360-lkm 2D in Assam and Arunachal Pradesh.

But unlike ONGC, Oil India has no problem with the 0.08% stake in Quippo held by directors. “Our legal department has ruled that 99.92% is equivalent to 100% and Quippo’s price bid can be opened,” confirms an Oil India legal department source.

“But we’re waiting to see what happens with the ONGC tender. If ONGC disqualifies Quippo we might rethink, let’s wait and watch.

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