Quippo shadow hangs over Globe seismic win

Vol 20, PW 13 (23 Mar 17) Exploration & Production

Ahmedabad-based transport company Globe Ecologistics looks set to finally break into the seismic acquisition business with an ONGC contract.

But beware disqualified bidder Quippo which might disrupt its plans by filing legal action against ONGC! Globe bid lowest quoting Rs168cr ($28m) when ONGC opened price bids on March 14 to shoot 3700-lkm 2D in the Pranhita-Godavari, Krishna Godavari, Cuddapah, and Cauvery basins, or Sector 3. Alpha Geo came second quoting Rs198cr ($33m).

Globe also bid lowest to shoot 3400-lkm 2D in Sector 10 covering the Bastar, Vindhyan-B, Chattisgarh, and South Rewa-Damodar basins, quoting Rs184cr ($31m). But Globe ranked second after Asian Oilfield for Sector 6 where ONGC wants 3130-lkm 2D shot in the Ganga basin.

Asian quoted Rs109cr ($19m) while Globe quoted Rs130cr ($22m). Quippo was the only one in the race to shoot 230-lkm 2D in Sector 4 covering the Andaman and Nicobar Islands but its bid was rejected.

"Andaman will be re-tendered," says a source. When contacted, a Quippo source confirmed its bids for all sectors were rejected because it initially showed a negative net worth, which only became "positive" after the bid was submitted.

Quippo complained in writing to ONGC chairman DK Sarraf on March 15. "We haven't heard back from ONGC yet," adds Quippo.

Another bidder says Quippo realised its bids are lower than the winning bids and is consulting lawyers.

LNG Summit