Quippo wins landmark victory against ONGC

Vol 19, PW 18 (19 May 16) People & Policy

Quippo Oil & Gas has won a landmark victory in the Delhi High Court against ONGC's decision to disqualify it from a tender to shoot 40,835-lkm 2D across 11 sectors.

In a 15-page ruling delivered on May 11, Justices Sanjeev Sachdeva and Badar Durrez Ahmed sharply criticised ONGC's decision to disqualify Quippo from the tender because it is not a 100% subsidiary of its parent SREI Group. "The condition of owning 100% in the subsidiary is not relevant to ensure successful execution of the work," said the ruling.

"The said condition is unreasonable, discriminatory, opposed to public policy, arbitrary and irrational." Contacted by this report, a senior ONGC source confirms Quippo's price bid would now be opened, "in the larger interests of the project," which has stalled because of Quippo's legal action. "They (Quippo) can't be L1 in all sectors," he said.

"Even if Quippo is L1 in three or four sectors at least the work will start." Another ONGC source fears opening Quippo's price will set a legal precedent with far-reaching consequences for all ONGC business. "Every bidder will now go to court if it is disqualified!" he says.

When ONGC opened price bids in January this year Alpha Geo emerged L1 in seven of 11 sectors, Gazprom affiliate Sibneft was L1 in three sectors and Advent Oilfield L1 in one sector. Another bidder advises ONGC to re-issue the tender.

LNG Summit