No interest in ONGC gas sale from Pundi
ONGC has only itself to blame if it receives no bids by the extended December 1 deadline in a tender to sell 11,500 cm/d of gas from the Pundi field in Tamil Nadu.
By the original bid submission deadline on November 3 only two companies bought bid documents: Sri Varahi Chemicals and KEI-RSOS Petroleum & Energy. KEI-RSOS was the only company to attend the October 5 pre-bid but ONGC rejected almost all its suggestions.
KEI-RSOS wanted the gas price set in rupees not US dollars. It also wanted the price 'frozen' for the contract duration and asked ONGC not to impose a penalty if at least 2000 cm/d was not taken within 90 days of the contract.
ONGC's standard response is that terms and conditions are set by the oil ministry and it can't change them. KEI-RSOS only received a satisfactory answer to its query on whether it can buy additional gas later if needed.
ONGC quoted ministry guideline saying that up to 50% additional quantity can be sold to an established buyer without a fresh tender.