Last updated at: 03:36 PM, Jul. 31, 2014  Home | About Us | Subscription | Client List | Contact Us | Careers                                                 Sign In
IndianFertilizer.com EnergyLineIndia.com IndianPetrochem.com EnergyLineTrading.com
Help | Advanced Search  

Cairn wants to beat the system by appointing EIL on nomination basis in Barmer block: Is it the best way out?

July 31: Cairn Energy India Limited (CEIL), the operator on the RJ-ON-90/1 block has sought a special dispensation for appointment of Engineers India Limited on a nomination basis to meet its various project and engineering requirements in the block, claiming that EIL is the only competent and suitable Indian contender for the job.
8The operator has sought EIL's appointment on the grounds that EIL is competent in engineering and project management, has competent resources and is also cost competitive in comparison with its global counterparts like Bechtel and Flour Daniel.
8The operator has also suggested the nomination since EIL is a PSU under the petroleum ministry, and this arrangement would avoid repeated tendering evaluation, and render savings, both in terms of time and cost.
The potential assignments planned to be awarded to EIL are:
8Approved project: One PMC job worth $8.9 million.
8Projects yet to be approved: FEED study for Enhanced Oil Recovery (EOR) and PMC work for engineering and construction.
Comment: The petroleum ministry is a little wary of the proposal for this may set an unhealthy precedent. Even if EIL is a public sector company, if more and more operators begin appointing EIL on a nomination basis, it defeats the purpose of getting the best possible contractors under a bidding mechanism as prescribed under the PSC. Eventually, there will be objections on the ground that if costs are not controlled through a competitive selection process, then government's take of profit petroleum will be adversely impacted. Cairn of course has its own reasons for appointing EIL on a nomination basis for doing work in the Barmer block. This is because the process of obtaining sanction from the Operating Committee and the Management Committee is a problem as ONGC, the other partner in the Barmer block, takes a long time in sanctioning approvals as the decision making process in the public sector E&P giant is a lengthy one. By hiving off the work to EIL on a nomination basis, Cairn wants to beat the system. Whether this is the best way out remains a moot point
  Details

Order for premium thread casing pipes-I: Mertex takes ONGC to task for canceling tender

July 31:  Mertex UK Ltd, which was the winning bidder for ONGC's tender for procurement of premium thread casing pipes (5-1/2" to 9-5/8") for 2013-14, has taken ONGC to task for canceling the order that was placed on it.
 8In fact, ONGC had decided to place orders for casing pipes under two categories, namely 3A and 4A, but when the proposal was sent to the company's apex Executive Procurement Committee (EPC) for its approval, the EPC decided to place an order only for 4A category pipes.
 8The EPC called for re-tendering of the requirement under category 3A, after revising the bid evaluation criteria (BEC).
 8Mertex has alleged that denying the order is a
violation of tender norms as the BEC criteria, which ONGC is seeking to change now, has been the basis of procuring since 2006. ONGC has placed an order on it (Mertex) on the same BEC for supply of 7" L80 13 chrome pipes under category 3A, in November 2013, which was successfully completed.
 8Then again, the intent of ONGC to re-tender items under Group 3A is difficult to digest considering the fact that its financial quote in the tender was 18% lower than the last purchase price paid by ONGC for similar items, Mertex has argued.
 (Click on Details for more information)
  Details

Order for premium thread casing pipes-II: ONGC refutes charge

July 31: ONGC has refuted the charge that it has canceled the tender with an ulterior motive.
 
8The E&P major took the decision keeping in mind the opinion of Independent External Monitors (IEMs) in the same tender where they opined that the tender condition of qualifying a bidder for supply of a superior product (Grade L-80 13 chrome pipes) based on supply experience of an inferior product (L-80 carbon-type pipes) is not reasonable.
 
8The IEMs also said that ONGC should have taken due care while formulating the definition of "similar material" for the present (premium casing of L80 13 chrome grade pipes) tender.
 
8The IEMs opinion had come on a representation made by one of the other bidder, Japan-based Marubeni-Itochchu Steel, in the same tender relating to procurement of 13 chrome casing pipes and crossovers under the same 3A category.
 (Click on Details for more information)
  Details

Order for premium thread casing pipes-III: IEMs reject charge of Integrity Pact violation by Mertex

July 31: Japan-based Marubeni-Itochchu Steel (MISI) had made another representation to ONGC alleging that two other bidders in the tender, Pangang Group Chengdu Steel and Vanadium Co. Ltd. (CSST), had violated the provisions of the Integrity Pact by quoting complete finished casing pipes through Mertex (as bidder) for all the Groups tendered.
 
8
As per the clause drawn by ONGC the warranties and guarantees of complete finished casing pipe are to be guaranteed by CSST. Without any such guarantee or undertaking for the casing pipes by the manufacturer, the bid will be rejected as per ONGC's tender document, Pangang and CSST had argued.
 
8
MISI had further stated that in the same tender Pancheng Yihong Co. Ltd (PYP) of China had also participated in the bid and the investment done by CSST in PYP is 51%. MISI suggested that the bids of Mertex and PYP were in violation of the Integrity Pact because they had a relationship with another bidder, directly or through common third parties, that put them in a position to have access to each other's information to influence the bid.
 
8
MISI argued that Mertex's tender should be rejected wholly in view of CSSTs involvement amounting to 51% interest in PYP, and also because CSST is indirectly involved in supplying the finished pipes offered through Mertex.
 
8
The IEMs after going through the case rejected the charge of Integrity Pact violation by Mertex saying that the company (Mertex) did not have any ownership interest in PYP or in CSST. Also, though CSST was a common third party having 51% shares in PYP, the component sold to both the bidders are different (plain end pipe to PYP and finished casing pipes to Mertex) and both the bidders were not in a position to influence each other's bid.
 (Click on Details for more information)
  Details

Crude oil produced from small, marginal, isolated and deepwater fields: ONGC seeks market-driven prices

July 31: ONGC has requested the petroleum ministry to exempt production from small, marginal, isolated and deepwater fields, along with IOR/EOR schemes, from subsidy discount so that the company gets market-driven a price, thereby making production from these fields and schemes economically viable.
 8If a higher remunerative price is not given for crude oil produced from these fields and through IOR/EOR schemes then such hydrocarbon reserves would remain unexploited, ONGC has argued.
 8ONGC has been striving to produce hydrocarbon from such fields but the high cost of production as compared to ONGC's low retention price under the existing under-recovery sharing mechanism is acting as a major impediment.
 8The E&P major's crude price, net of under-recoveries, discount and levies (such as cess, royalty and VAT) during last two financial years was worked out to a mere $29 (FY 2012-13) and $25 (FY 2013-14) per barrel.
 8The E&P major has pointed out that in any case out of any increase in retention price for ONGC, a major portion, to the tune of 60%, goes back to the government exchequer in the form of incremental sales tax, royalty, corporate tax, dividend and dividend distribution tax.
 8In light this, developing and producing crude oil from such fields and arresting the decline from existing old and matured fields would not be economically viable at lower net realized crude prices.
 (Click on Details for more information)
  Details

ONGC's block KG-DWN-98/2, Part-I: DOCs rejected for two clusters for want of DSTs

July 31: The DGH has rejected the Declarations of Commerciality (DOCs) for two clusters in the ONGC's block KG-DWN-98/2 as their production profile could not be generated in the absence of surface flow and drill stem test (DST) data.
 8There are a total of three discoveries in the two clusters in the block. While Cluster-I consists of D and E fields in the block along with the independent but adjacent G-4 discovery (under a nomination PML), the other cluster (dubbed Cluster-III) consists of an ultra deepwater discovery UD-1 in the
KG-DWN-98/2 block.
 8The GlIP for these rejected discoveries was pegged at a total of 96.97 BCM. While the GIIP for the D&E field was estimated at 16.64 BCM (587.6 BCF), the GIIP for the UD-1 was pegged at 80.33 BCM (2.836 TCF).
 8However, amidst this gloomy scenario, the positive thing that has happened for ONGC is that the DOC for one of the cluster (budded Cluster-II) has been okayed by the DGH.
 8The DOC for Cluster-II consists of four gas discoveries (U1, U3, A1, R1) and five oil discoveries (M1, G2P1, G-2-2, A-2 & M3) in the block.
 8A total of 790.401 MMBBL of oil and 42.060 BCM (1.485 TCF) of gas is estimated to be initially in-place. Of this, the recoverable reserves are pegged at 140. 891 MMBBL of oil and 28.70 BCM of gas.
 
8ONGC has a 100% stake in the NELP-I block KG-DWN-98/2 located off the coast of Godavari Delta in the east coast.
 (Click on Details for more information)
  Details

ONGC's block KG-DWN-98/2, Part-II: Discovery-wise details of reserves that have been okayed by DGH

July 31: A total of 790.401 MMBBL of oil and 42.060 BCM (1.485 TCF) of gas is estimated to be initially in-place as per the DOC approved for Cluster-II. The discovery-wise, in-place volume estimation for oil and gas (under Cluster-II) that have been okayed by the DGH is as follows:
 
8Gas Initially In-place (GIIP)
 --U1: 13.35 BCM

 --U3: 8.8 BCM
 --A1: 8.57 BCM
 --R1 (Annapurna):
11.34 BCM
 --Total GlIP: 42.060 BCM (1.485 TCF)
 
8
Oil Initially In-place (OIIP)
 --M1 (Padmavati): 7.76
MMm3

 --G2P1 (Kanakdurga): 38
MMm3
 --G2-2: 10.5
MMm3
 --A2: 49.8
MMm3
 --M3: 19.6
MMm3
 --Total OIIP:
125.66 MMm3 (equivalent to 790 million barrels)
 
(Click on Details for more information)
  Details

ONGC's block KG-DWN-98/2, Part-III: More than $8 billion approved for 8 gas wells and 14 oil wells

July 31:  The DGH has okayed a budget of more than $8 billion for drilling a total of eight gas and 14 oil wells in the ONGC's block KG-DWN-98/2.
 
8
While 4.076 billion has been approved as capex, the remaining $4.021 billion has been okayed as opex
 
8
All the 22 wells (eight gas and 14 oil wells) are part of the DOC approved for Cluster-II.
 
8
This is perhaps the largest investment in an offshore NELP block outside the D-6 discovery.
 
8
The investment will come as a huge shot in the arm for the E&P industry in India.
 
8
ONGC is bullish about the block and claims that more discoveries are likely in the future.
 
8
At this point, the ultra deepwater discovery, UD-1, is not being targeted as the depth is beyond what current technology can handle.
 (Click on Details for more information)
  Details

L-1 price for Padur pipeline higher than reserve price: EIL chairman explains gap

July 31: The EIL chairman A.K. Purwaha was had to stand in and provide an explanation at a board meeting of ISPRL, attended by petroleum secretary Saurabh Chandra, for the huge gap between the price that it had estimated by the public sector consultant pipeline to be laid from the Land Fall Point (LFP) to Mangalore through the Intermediate Valve Station (IVS) and from the IVS to Padur and price elicited from the L-1 bidder in the tender.
 8IL&FS Engineering & Construction Company Limited (IL&FS) had emerged as the L-1 bidder in the tender after reverse auction. It had quoted a price of Rs 213.79 crore, which was found to be 39% higher than the reserve price pegged by EIL at Rs 154.34 crore.
 8Purwaha said that the the total scope of work was split into three components, namely cost of material procurement, laying of the pipeline and Horizontal Directional Drilling (HDD).
 8As far the cost of procuring materials is concerned, Purwaha found EIL's estimate of Rs 57 crore to be realistic. However, he agreed that with regard to the laying of the pipeline, the cost estimate of Rs 45 crore was much lower and needed to revised upwards to Rs 61 crore because the terrain had turned out to much more difficult than was originally envisaged. Also, the cost of HDD had to be doubled to Rs 60 crore as against the earlier estimate of Rs 30 crore as EIL has not anticipated that the exercise would entail drilling through rocks and not normal soil as was initially believed.
 8Thus, the total cost of the pipeline has now been revised upwards by Rs 48.5 crore (which also includes a rise of Rs 2.5 crore on account of additional taxes) as against the EIL's originally estimated cost of Rs 154.34 crore.
 8ISPRL has now decided to award the contract for laying of the pipeline to IL&FS.
 (Click on Details for more information)
  Details

Tender Briefs

July 31:  8GAIL invites bids for charter-hire of LNG vessels: GAIL has invited bids for charter-hire of LNG vessels.
 --Tender documents will be available from August 1, 2014.
 --A pre-bid meeting has been scheduled for August 22, 2014 (at 10:00 hrs).
 --The due date for submission of bids is October 30, 2014 (upto 14:00 hrs).
 --Click here for more information
 
8More tenders: Some more tenders floated by oil and gas companies are:
 --Supply and installation of radar gauges at LPG storage vessel, Kanpur [IOC] Details
 --Supply of various sizes of CS pressure balance plug valves, Mumbai [BPCL] Details
 --Augmentation works for ETP, Petrochemical Complex-II, Pata [GAIL] Details
 --Design and installation of retrofitted VCB in place of MOCB, Barauni Refinery [IOC] Details
  Details

Block CY-ONN-2004/1: Two wells so far turn out dry but ONGC keeps hopes alive

July 31: ONGC is keeping its hopes alive in Block CY-ONN-2004/1, even though two wells have gone awry so far.
As per the operator has drilled one out of 3 MWP wells in Phase-I -- well number CYON041NCAC(CD#6) has been drilled / is being drilled
8The second well, CYON041NCAA (CD#4) which was drilled to 4914 m against PSC commitment of 4300 m turned out dry and has been abandoned.
8The third well CYON041NCAB(CD#5) was drilled to 515 m, against PSC commitment of 4100m, but also had to be terminated.
8The operator had sought second and third extension of Phase-I from April 29, 2013 to October 28, 2013 and then further extension to April 28, 2014.
  Details

CCEA notes revisited by Modi government: Details

July 31: With the new government in power, all cabinet notes are being revisited by the petroleum ministry.
8A series of presentations are being organized in the petroleum ministry around the old cabinet notes.
Two such presentations doing the rounds are on:
8CCEA note for amended policy on "Exploration in mining lease areas after expiry of exploration period"
8Policy framework for relaxations, extensions and clarifications at the development and production stage under PSC regime for early monetization of hydrocarbon discoveries
  Details

Domestic LPG: Price build-up matrix

July 31: The website carries here details of the price determination matrix and price build-up details of the Rs.410.50 per cylinder price in Delhi:
8FOB Arab Gulf price of LPG: $859.76 per MT
8Add: ocean freight from Arab Gulf to Indian ports: $45.72 / MT
8Total Cost and Freight (C&F) price: $ 905.49 / MT (or, Rs.825.95 per cylinder)
8Add: import charges (insurance, ocean loss,, LC charges, port dues): Rs.6.63 per cylinder
8Add: customs duty: nil
8Total Import Parity Price: Rs.832.58 per cylinder
8Refinery Transfer Price (RTP) for domestic LPG, that is, the price paid by OMCs to refineries: Rs.832.58 per cylinder
8Add: Inland freight and delivery charges: Rs.40.18 per cylinder
8Add: Marketing cost of OMCs: Rs.10.52 per cylinder
8Add: Marketing margin of OMCs: Rs.6.89 per cylinder
8Add: Bottling charges (filling and cylinder cost): Rs.38.68 per cylinder
8Total desired price (before excise duty, VAT and distributor commission): Rs.928.85 per cylinder
8Less: Subsidy by central government: Rs.22.58 per cylinder
8Less: Under recovery to OMCs: Rs.532.86 per cylinder
8Price charged to Distributor (bottling plant price): Rs.373.41 per cylinder
8Add: Excise duty (including education cess): nil
8Add: Distributor commission: Rs.37.25 per cylinder
8Add: VAT: nil
8Total Retail Selling Price: Rs.410.66 per cylinder
8Total Retail Selling Price (rounded off): Rs.410.50 per cylinder
  Details

GNFC goes for a combination of RLNG and domestic gas to feed its Ammonia Syngas plant

July 31: The Gujarat Narmada Valley Fertilizers and Chemicals Ltd. (GNFC) goes in for a combination of RLNG and domestic gas to feed its ammonia Syngas Generation Plant (ASGP), which commenced production in October, 2013 and is currently operating at almost 100 per cent capacity.
8Against natural gas requirement for the ASGP of about 950,000 SCMD, part of it is being met through supply from Cairn's Rajasthan field through an allocation made by the ministry, the balance through spot purchase of RLNG.
Initially, the allocation from Cairn's field was 100,000 SCMD, which was increased to 200,000 SCMD on June 11, 2013, resulting in a substantial reduction in the quantity of high cost RLNG being procured for the ASGP.
8Cairn has recently renewed the Gas Sales Agreement with a validity uptil March 31, 2015 with Cairn, wherein the gas supply is expected to be 250,000 SCMD till September, 2014 and about 350,000 SCMD from October, 2014 onwards.
8Gas pricing under the the renewed contract is as per the new gas pricing policy, and including the $1 facility charges on account of sellers' facilities used for supplying gas at the delivery point of Wankaner, the price is expected to be about $9.4/mmbtu.
8The balance in requirement is met through procurement of spot RLNG on monthly or bi-monthly basis with the price ranging from $14.6 to 19.6/mmbtu GCV, with a supplier being selected on L1 basis.
8Given the high RLNG cost, the operator is lobbying with the fertilizer ministry to facilitate increasing the allocation of Cairn gas further.
  Details

IT liability on ISPRL for HPCL's 0.3 MMT takeover of Vizag crude storage estimated at Rs.80 crore: Joint ownership mooted to mitigate impact

July 31: The Indian Strategic Petroleum Reserves Ltd. (ISPRL) has mooted joint ownership with Hindustan Petroleum Corporation Ltd (HPCL) of one of the compartments of the Vizag crude storage cavern with storage capacity of 0.3 MMT to mitigate the impact of income tax incidence estimated at Rs.80 crore on ISPRL
8The income tax liability for ISPRL on the amount of Rs.234 crore to be received from HPCL for the exclusive use of the single compartment  is estimated at Rs.80 crore.
8However, as per opinion obtained by reputed tax consultant, there would be no income tax liability in case of joint ownership by ISPRL and HPCL.
8There would be a tax incidence but this would be neutralized by reducing the value of assets in ISPRL's books to the extent of the proportionate cost paid by HPCL.
  Details

Outstanding issues with the coal ministry: Details

July 31: The petroleum ministry has put together a brief on all outstanding issues which require involvement of the coal ministry for resolution.
The list of issues are outlined below:
Issues of overlap of oil and gas blocks with coal blocks pose serious concerns, and must be resolved quickly
8Overlap of oil and gas blocks with coal blocks has been a serious cause of concern, where simultaneous operations in the common areas pose a threat and the coal ministry's intervention is required to have this matter resolved on priority.
8Notably, after allotment of CBM blocks, several coal blocks have been allotted  by the coal ministry, where, in a few cases, there is an overlap area. Similar situation exists in pre-NELP and NELP blocks which overlap with allotted coal blocks. This situation has been the cause of major disputes, and has remained unresolved despite several committees having examined the issue.
8There is an immediate need to put in place a mechanism to address the problem to enable smooth exploitation of both coal as well as well as CBM / oil and gas resources.
Setting up of fertilizer plant hampered by CIL's indecision in supplying better quality of coal
8Setting up of coal gasification based Urea cum Ammonium Nitrate Complex at Talcher, Odisha is getting hampered due to Coal India Ltd.'s (CIL's) indecision in committing an enhanced quality of coal. In this context, the coal ministry's support to have CIL expedite its decision is required immediately.
8An MoU to setup this plant was signed between GAIL, RCF, CIL and FCIL in September, 2013 and this was envisaged to be done through setting up of two joint ventures -- the upstream joint venture concerned with coal gasification, with GAIL as the major partner, and, the downstream joint venture for the fertilizer and ammonium nitrate with majority shareholding of CIL and RCF.
8Whereas the technology exists for coal gasification with ash content of less than 35 per cent, the problem is that domestic coal has much higher ash content. In this context, CIL is required to commit an enhanced quality of coal as well as agreement for setting up a coal washery to bring down the ash content of domestic coal.
8The ministry wants the coal ministry push Coal India Ltd to expedite a decision on the subject.
Support in implementation of amendment of CBM policy
8The coal ministry's support is required in implementing the amendment to the existing CBM policy for allowing exploration and exploitation of CBM from mining areas where mining lease is held by CIL and its subsidiaries and other central and state companies.
8Although the CCEA had approved the proposal of amending the existing CBM policy, the decision could not be implemented because of the coal ministry's reservations on extending benefits to companies other than CIL and its subsidiaries.
8Since the proposed policy is aimed at enhancing production of CBM, while not coming in the way of production of coal as per approved mining plans, the coal ministry's support is required to carry forward this initiative.
  Details

News Briefs

July 31: 8Retail selling price of LPG packed cylinders: The website carries here, for reference purposes, details of the retail selling price of LPG packed cylinders in different states and Union territories under the following for:
 --Domestic subsidized 14.2 kg LPG cylinder
 --Domestic non-subsidized 14.2 kg LPG cylinder
 --Non domestic LPG cylinders of 19 kgs. Click here
8LPG cost goes up in Kerala and Karnataka on account of higher state taxes: LPG cost goes up in Kerala and Karnataka, by Rs.4.5 and Rs.3.0 per cylinder, respectively, on account of higher state taxes.
 --LPG in Kerala has gone up from Rs.442.50 to Rs.447.00 per cylinder, that is a price rise of Rs.4.50 per cylinder, due to input tax credit restrictions
 --LPG in Karnataka has gone up from Rs.422.00 to Rs.425 per cylinder, that is a price rise of Rs.3.00 per cylinder, due to an increase in entry tax on crude of MRPL.
  Details

16 oil companies contributed Rs 3.05 lakh crore to exchequer in 2014-15

July 30: Did you know that a bunch of 16 oil companies, including three private companies (RIL, Essar and Cairn India), together contributed a whopping Rs 3,05,000 crore to the central and state exchequer in 2013-14?
 
8
The contributions have been tabulated in terms of individual tax or duty element as well royalty, profit petroleum and dividend payments.
 
8
The largest contributor to the exchequer was not ONGC (at Rs 40,575 crore) but IOC at Rs 86,163 crore.
 
8
BPCL and HPCL were also very large contributors at Rs 46,602 crore and Rs 36,423 crore
 
8
RIL contributed a whopping Rs 31,371 crore, followed by Cairn Energy at Rs 14,363 crore and Essar at Rs 9,102 crore.
 
8
Public sector oil marketing companies contributed more to the state exchequer than to the central kitty. IOC`s contribution to the states through sales tax, Octroi and other tax elements was Rs 58,871 crore as against Rs 27,293 crore to the centre. The same trend held for HPCL and BPCL.
 
8For RIL, the contribution to the central exchequer was much higher at Rs 25,613 crore, of which Rs 15,460 crore was by way of royalty on crude oil and gas.
 Click here for more information
  Details

Violation of Integrity Pact by Rolls Royce-I: ONGC wants commission amounts returned

July 30:  The controversy over non-disclosure of payment of commissions to Indian agents by Rolls Royce (RR) for supply of equipment and spares for process gas compressors (PCGs) and turbine generators (TGs) to ONGC is not showing any signs of ebbing.
 
8ONGC, armed with the opinion of the Independent External Monitors (IEMs), has asked Rolls Royce to pay back the commission, along with applicable interest, paid by RR to its agent on all Purchase Orders (POs).
 8So far, according to evidence unearthed by Rolls Royce, commissions were paid in 38 previous cases at the rate of 10% to 11.3% of the contract value.
 
8The total value of these 38 cases amounts to GBP 28.57 million, while the commission paid amounts to GBP 3.22 million (equivalent to Rs 32.93 crore).

 8The payments came to light when Rolls Royce admitted to past transgressions (from 2007 onwards) while submitting the Integrity Pact for purchase of spares in December, 2013. The multinational admitted that there were possibly 40 other instances of transgressions in dealings conducted with ONGC, over and above the 38 cases unearthed so far.
 
8Of these 40 instances, 24 cases were such where commissions were paid to Aashmore Pvt Ltd, an outfit owned by Ashok Patni, a former Commercial Advisor of Rolls Royce, who subsequently became the multinational's agent in all commercial transactions with ONGC.
 
8Interestingly, the payment of commissions is not illegal but what is unlawful is the fact that Rolls Royce did not declare these payments to ONGC.
 (Click on Details for more information)
  Details

Violation of Integrity Pact by Rolls Royce-II: IEMs opinion

July 30:  To be on the safe side, ONGC had sought the opinion of Independent External Monitors on the next course of action with Rolls Royce.
 The IEMs, after deliberating on all the aspects of the case, have opined that:
 8Rolls Royce has transgressed the provisions of the Integrity Pact (IP) and terms and conditions of the contract by not disclosing to ONGC the use of an agent in respect of the rate contracts signed for supply of equipment and spares for process gas compressors (PCGs) and turbine generators (TGs).
 
8In addition to the 38 Purchase Orders (POs) reported by Rolls Royce (RR) to ONGC there are more POs placed by the E&P major on RR under the impugned rate contracts. ONGC can demand the commission paid by RR on all the POs placed by ONGC, over and above the 38 reported so far.
 
8ONGC can exercise its legal and contractual rights to recover the commission, along with penalties and damages, which are payable by RR in terms of the provision of contract signed with ONGC.
 8On the question of whether ONGC should continue to do business with Rolls Royce, IEMs opined that it is the prerogative of the management of ONGC to take a view on this.
 8ONGC should make its best efforts to recover the commission from RR and be careful in corresponding with the multinational on the issue.
 (Click on Details for more information)
  Details

 

 

Archive

Copyright 2003-2013 www.indianpetro.com. All rights reserved