CAG heat on ONGC for hiring rig from RIL

ONGC had hired RIL's rig 'Actinia' with expenditure of Rs 146.71 crore from February 2009 to July 2009 to drill three locations

Amid ONGC’s plans of sharing Reliance Industries’ infrastructural facilities in the eastern coast, the Comptroller and Auditor General (CAG) has questioned the hiring of a rig from the Mukesh Ambani-led company by the state-run oil major in 2009.

ONGC had hired RIL’s rig Actinia at a cost of Rs 146.71 crore for a period of six month (from February-July 2009) to drill at three locations. Terming the deal as “avoidable”, the national auditor report indicated that the hiring for six months on an assignment basis was in deviation to standard tendering procedure.

“Actual deploymet of the rig indicated that its hiring was not necessary for any of the three identified locations,” the report said, adding that the rig was hired “without calling for competitive bids.”   

It was in November 2008 that ONGC received an offer from RIL for sharing the latter’s rig along with additional service and equipments for a period up to July 1, 2009. The rig had a capacity to drill wells up to a water depth of 600 meters.

CAG had also notified that the rig idled for want of materials which resulted in “unfruitful expenditure during February 2009.” Responding to this, the company management said that rig idling was due to non-availability of “sub-sea wellhead” which had to be arranged from RIL.

This comes at a time when ONGC has signed an MoU with RIL to explore the possibility of sharing the latter’s un-utilised infrastructural facility in the east coast.