BJ beats Schlumberger

Vol 14, PW 14 (13 Jan 11) News in Brief

BJ Services is set to walk away with a Rs81cr ($18m) ONGC contract for operations and maintenance services for offshore well stimulation vessel Samudra Nidhi.

PETROWATCH learns ONGC’s ‘independent external monitors’ Arvind Varma, VK Agarwal and VK Shunglu ruled in favour of BJ on December 27, in a dispute triggered by BJ’s complaint over ONGC’s plans to favour Schlumberger. ONGC wanted the selected contractor to have done similar work for three of the past five years.

Schlumberger Asia didn’t meet this condition but tried to justify its bid using the experience of affiliate Schlumberger Offshore. ONGC’s monitors rejected this, saying they didn’t believe Schlumberger Asia’s parent company Schlumberger Holdings had the “experience capability” of Schlumberger Offshore, described as “a rank outsider which is not part of the consortium and not the parent of Schlumberger Asia.

” It is now up to ONGC’s Executive Purchase Committee to take a decision.