SC decision on ONGC pipeline row in July; stock down
The Supreme Court would start its final hearing on the $125-million ONGC contract for laying offshore pipelines along the country's west coast in the first week of July.
At 9:55 am, shares of ONGC were trading 1.30 per cent down at Rs 272.90 on the Bombay Stock Exchange.
A consortium led by Swiber Offshore company has moved the apex court against a high court order that set aside the contract awarded by ONGC to it on grounds that oil and gas major acted in an arbitrary manner.
A vacation bench of justices B S Chauhan and Swatanter Kumar said as the matter was important, prayer filed by Singapore-based offshore construction major Swiber Offshore company and Punj Llyod would be heard after the court resumes its work in the first week of July.
"Keeping in view the urgency in the matter, we consider it appropriate to direct the listing of these matters for final disposal in the first week of July 2011. Till the next date, the interim order as passed by the High Court shall continue," the bench said.
The high court had on April 6 set aside ONGC's decision to award the contract to a consortium led by Swiber Offshore company along with Sime Darby of Malaysia.
The apex court was hearing a petition filed by the Swiber Offshore challenging the high court's order. The court has already clarified that Swiber Offshore Construction could continue its work on the project that it started from March.
The Singapore-based joint venture, however, would not claim any equity on the work done by it after the court verdict, the court had said.
ONGC had floated $125 million tender for laying a 116.5 km sub-sea pipeline off the western coast of India, which was awarded to the Singapore-based firm.
However, the decision was challenged by other bidders, including Punj Lloyd, in the high court. They contended that while awarding the tender, ONGC had ignored some benefits offered by them on price preference.
Major infra companies like L&T, Punj Lloyd and Leighton had also participated in the bidding.
Swiber was the lowest bidder at $124.86 million, while Punj Lloyd had made a bid at $131.32 million.
