New Delhi 

State-run Oil and Natural Gas Corporation (ONGC) has cancelled its tender for hiring jack-up rigs, citing significant pricing anomalies and concerns over competitive integrity, according to a clarification issued by the company.

Responding to a recent media report, ONGC said it follows "strict adherence to established public procurement principles, with a strong emphasis on transparency, fairness, and the promotion of healthy competition."

The company noted that during the evaluation process, "the pricing levels and bid patterns observed indicated an unusually steep escalation of approximately 60%, from a day rate of USD 35,606 to USD 56,195, within a span of about nine months."

"This increase was considered significantly beyond the bounds of reasonable and competitive market behaviour," ONGC said, adding that when assessed alongside overall bidding pattern and prevailing global conditions, the trends raised concerns of potential collusive practices.

ONGC said it is "duty-bound to examine these concerns," and the assessment ultimately led to the decision to cancel the tender.

Reiterating its position, the state owned company said its actions are guided by the objective of safeguarding organisational interests, ensuring the prudent utilisation of public funds, and upholding the integrity and credibility of the procurement process.

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It further clarified that the decision was taken based on pricing reasonableness, competitive integrity, and alignment with established procurement norms, without any extraneous influence.

ONGC also underlined its commitment to the industry, stating it "remains committed to maintaining transparent and constructive engagement" and will continue to encourage fair, competitive, and responsible participation, while taking steps to prevent cartelisation and preserve the sanctity of its procurement processes.