ONGC shortlist

Vol 14, PW 18 (10 Mar 11) News in Brief

ONGC Ahmedabad is expected to prepare by the end of this week a shortlist of companies for service contracts to increase production from seven mature fields.

Last November, 11 companies including Halliburton, Baker Hughes, GSPC-Oilex, Trisun-Centrum-Petrogas, Schlumberger and Weatherford sent in Expressions of Interest (EoIs) for the job. ONGC plans to immediately exclude those companies reporting losses for three consecutive years.

“How can such companies possibly hope to share the risk (of the proposed redevelopment) with us” wonders a senior company source. “They won’t make our shortlist.

” Cost of redeveloping each field could be at least Rs50cr ($11m) and as much as Rs75cr ($16m). ONGC will forward the shortlist soon to its Executive Committee which will take a final decision on when to invite bids.

ONGC is also preparing a list of criteria against which to evaluate bids, like a minimum turnover requirement for interested companies.