Responding to media speculation, ONGC detailed how bid evaluations exposed a drastic 60% increase in daily charter rates—from $35,606 to $56,195 within nine months. Such escalation, the company noted, is inconsistent with prevailing global market trends.

The analysis of bid patterns further fueled concerns over coordinated efforts among participants to manipulate prices. ONGC, adhering strictly to public procurement guidelines, prioritized integrity by terminating the process.

“We promote transparency and discourage malpractices like bid rigging or unrealistically low quotes,” ONGC affirmed. This action protects public money and ensures value-for-money acquisitions.

No external pressures influenced the decision, which was solely based on evidence of non-competitive behavior. ONGC plans to reissue tenders with enhanced oversight to prevent future occurrences.

The stock market applauded the transparency, as ONGC shares edged up 0.35% to ₹283.20 on NSE around 1:23 PM. This episode highlights the challenges in offshore drilling procurement amid volatile energy markets.

As ONGC pushes for energy self-reliance, robust tender processes remain vital. The cancellation serves as a warning to errant bidders and reinforces the PSU’s reputation for ethical practices in a high-stakes industry.