Wednesday, 9 August 2017

Road shows by ONGC: Rs 850 crore of equipment purchase

Highly placed sources said that ONGC RIL tenders contracts is planning road shows abroad for some of its critical equipment requirements so as to be able to elicit more competition
One such road show will involve critical drilling related equipment worth around Rs 850 crore.
Find out more on what kind of equipment this is going to be and who can qualify
The qualification rules are also to be relaxed to ensure higher competition.

What kind of discount is ONGC looking for?


What is the extent of discounts that ONGC is currently seeking from suppliers of E&P equipment?
The discount sought is high.
Since the rapid decline of equipment and service prices, the traditional Last Purchase Rate model for determining the reserve price is no longer working.
A rough yardstick is followed, which is usually a deep discount to the Last Purchase Rate

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