Indian Board to Review Offshore Vessel Deal

The Oil & Natural Gas Corporation (ONGC) Board is expected to take up a proposal to place orders with the Netherland's IHC Offshore & Marine BV for a well stimulation vessel for about $244 million against the company's budget estimate of $150 million.

The reservations over the contract stem from the fact that IHC Offshore & Marine was the only bidder that was technically qualified and it quoted a price of $254 million for the vessel, or nearly 70% higher than ONGC's estimate, reports 'The Times of India'.

Sources indicated to the newspaper that the proposal may not find an easy passage in the board, with a section of the management holding the opinion that the contract should be retendered to avoid vigilance complaints.

Source: The Times of India