Foreign Firm Hired by ONGC for Vetting of Stratigraphic Well Locations—No Tender Floated

Corporate Communications Head of ONGC - Ms. Amita Tandon, instead of replying to email queries, issues open threat of legal action to indianpsu.com

A growing controversy surrounds Oil and Natural Gas Corporation (ONGC) over the alleged irregular awarding of a major contract—without a tender—to French consulting firm Beicip-Franlab. The assignment reportedly involved vetting locations for stratigraphic wells, a critical component of India’s exploration and energy security strategy. Despite repeated attempts by www.indianpsu.com to seek clarification, Director (Exploration) Ms. Sushma Rawat, who is nearing retirement, has remained unresponsive to our official queries.

Key Questions Raised by Indian PSU

Why was Beicip-Franlab selected without a tender?

The awarding of such a sensitive and high-value project without a competitive bidding process is in stark contrast to General Financial Rules (GFR) and Central Vigilance Commission (CVC) guidelines. With ONGC receiving over ₹3,200 crore from the Ministry of Finance, such deviations demand full public scrutiny. ONGC’s justification—”approval of competent authority”—does not address concerns around transparency or due diligence.

Is Beicip-Franlab the only qualified firm?

Absolutely not. Major global firms such as Schlumberger, Halliburton, Rystad Energy, DMT (Germany), and DeGolyer and MacNaughton (D&M) are capable of handling similar assignments. Ignoring these firms and bypassing competitive procedures raises red flags about favoritism and value-for-money in the use of public funds.

Has Beicip-Franlab been given multiple projects without tenders?

Information from ONGC insiders and previous reports indicate a pattern of awarding key consultancy roles to Beicip-Franlab for exploration work in the Northeast fold belt region—again, on a nomination basis. If true, this points to a possible systemic bypassing of competitive protocols.

Was Beicip-Franlab falsely presented as a government company?

Reportedly, the Director (Exploration)’s office misinformed ONGC’s EPC (Exploration Planning Committee) that Beicip-Franlab is a government entity. This assertion was apparently based on the firm’s affiliation with IFP Energies Nouvelles (IFPEN), a public-sector scientific institute in France. However, IFPEN operates as an Établissement Public à caractère Industriel et Commercial (EPIC)—a publicly owned but commercially run enterprise. This is not equivalent to a government department, and therefore does not qualify for Government-to-Government (G2G) exemptions under Indian rules.

Did the Director’s office mislead ONGC’s highest decision-making body?

If the EPC was led to believe that this was a G2G transaction to sidestep normal procurement rules, it could amount to willful misrepresentation. The IFPEN website itself confirms it is not a government company. Any mischaracterization to influence contract approval raises questions of fiduciary failure.

Allegations of Favoritism

This controversy comes amid earlier allegations of nepotism against Ms. Sushma Rawat from April 2025, lending weight to current suspicions of preferential treatment toward Beicip-Franlab. While unproven allegations should not be taken as guilt, the pattern of procedural lapses and opaque decision-making necessitates an independent investigation.

What Must Happen Next

  • Public Disclosure: ONGC must reveal all documents pertaining to the awarding of this contract, including internal notes, legal opinions, and financial justifications.
  • Clarification from MoPNG: The Ministry of Petroleum and Natural Gas should clarify whether this deal qualifies as a G2G transaction under Indian procurement norms.
  • Finance Ministry Oversight: Clear policy directions are needed from the Ministry of Finance on whether PSUs can invoke G2G exemptions with EPIC-type foreign bodies.
  • CVC/CAG Probe: A detailed investigation should be initiated by either the CVC or the Comptroller and Auditor General (CAG) to determine if any rules were broken.

www.indianpsu.com spoke to Mr. Pradeep Rai, Senior Advocate and two times former Vice-President of Supreme Court Bar Association who said “when public funds are at stake and there is a potential risk of loss to the national exchequer due to decisions taken by officials, it is imperative that such decisions are made with the utmost care and diligence. This is especially true in matters involving public tenders or high-level administrative decisions, where strict adherence to the established tendering process is essential. Any deviation from this process may result in mismanagement, misappropriation, or favoritism — outcomes that not only compromise the public interest but also undermine the integrity of the institution involved”.

Many emails sent to corporate communications department of ONGC, CMD ONGC, Director (Exploration) ONGC Sushma Rawat and Secretary Petroleum Pankaj Jain went unanswered. Instead of coming forth with ONGC’s views on this topic, Ms. Amita Tandon, Corporate Communications Head of ONGC, directed www.indianpsu.com and its Editor-in-Chief Vivek Avasthi not to carry the article and threatened us of dire legal consequences if we went ahead with the story.

We Report-You Decide…

(Disclaimer: While every effort has been taken to authenticate the information acquired above, no one has clarified or responded to the emails. Besides, we hereby clarify that the facts which came to light is following the journalism standards.)

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