ONGC denies favouring VME for DSF-2 project

Vol 28, PW 8 (08 May 25) People & Policy

ONGC has forcefully denied allegations of favouring Indonesia's VME Companies for its offshore Mumbai DSF-2 six-well-head platform development project.

VME has bid for four topsides in a tender from state-owned warship and submarine manufacturer Mazagon Dock Shipbuilders, which is executing DSF-2 for ONGC. Between April 21 (2025) and April 23 (2025), ONGC's offshore projects head, R Narhari, and chief manager (fabrication) Pramod Kalra visited Goa-based Chowgule & Company and VME's yards without taking Mazagon along, raising eyebrows all around.

VME is one of nine bidders who sent in offers for four of the six platforms by March 18 (2025). However, it is not among four of the nine bidders on ONGC's approved vendors list.

"Usually, such visits (to qualify yards) are done by ONGC's vendor cell and not by the projects team," claims a source. "Qualifying a yard is an exhaustive two or three-month-long process, but ONGC displayed undue haste in this case."

He wonders why ONGC didn't take Mazagon along for the visits. "If anything goes wrong, ONGC will hold Mazagon responsible, not a subcontractor like VME," he stresses.

"Why didn't ONGC visit the yards of the other bidders who were not on its vendor list?" Our source claims that VME didn't respond when Mazagon sought DSF-2 quotes in 2024. "Mazagon (and project consultant Nauvata) did not visit VME during their (November 2024) tour of yards in UAE and Southeast Asia," we hear.

A senior ONGC source denies any attempt to favour VME. "Qualifying a yard doesn't happen immediately," he said.

"But only after all documents are checked thoroughly." He adds that VME has worked on similar offshore projects for ONGC as a subcontractor, including D1, Cluster-7 and a portion of Cluster-2 at KG-DWN-98/2.

He continues that the ONGC team didn't visit other DSF-2 well-head platform bidders not on the company's approved list, such as UAE's Quality International, "as they don't have a track record" of working for ONGC, even as sub-contractors. "But Mazagon did visit the Quality yard," he adds.

Moreover, he believes VME ignored Mazagon's request for DSF-2 budgetary quotes in 2024, probably because its order book was full.

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ONGC's vendor cell is the company's “interface with the outside world, but the vendor cell can authorise others within ONGC to visit yards for specific projects,” says a source. Also, ONGC decided to visit some yards as DSF-2 is an important project which “should be monetised at the earliest and the tendering process is ongoing.” Mazagon must complete six platforms and 199-km of pipelines by May 2026. On ONGC's approved vendors list are UAE's Adyard Abu Dhabi, which bid for the jackets and topsides; Das Offshore, which bid for the jackets, piles and topsides; EEW Group, which bid only for the piles; and PetroVietnam, which bid for the piles, jackets and topsides. On May 1 (2025), ONGC's projects team wrote to VME's Batam yard approving it for decks and topsides of well head platforms for DSF-2 only. In contrast, it was the vendor cell that wrote on May 2 (2025) to Swan approving it for jackets and piles in general, and saying it will be included in the next vendor list. On April 25 (2025), the vendor cell wrote to Chowgule and approved it for jackets and piles in general, adding that it will be included in the vendors list in the next revision.

ONGC denies favouring VME for DSF-2 project

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