ONGC appoints Ernst & Young to draft post-APM contracts

Vol 5, PW 18 (24 Oct 01) News in Brief

ONGC is gearing up for life after March 31st, 2002 when the government's Administered Pricing Mechanism in the oil sector is consigned to history.

Petrowatch learns India's state-owned oil explorer shortlisted Arthur Andersen, Ernst & Young and Price Waterhouse Coopers for a contract to draft a crude offtake supply agreement and gas sales agreement. We further learn Ernst & Young was awarded the contract about two weeks ago.

"Now that the APM is to be abolished," reveals an ONGC source, "We will need internationally accepted model contracts drafted for our future commercial dealings."