Consultancy contracts by ONGC are as per due process and best practices: Puri

New Delhi: Consultancy contracts awarded by Oil and Natural Gas Corporation (ONGC) are in line with due process and global best practices, Union Petroleum and Natural Gas Minister Hardeep Singh Puri informed the Lok Sabha.In a written reply to a starred question, Puri said ONGC engages with specialised entities for carrying out complex technical studies such as modelling of permeable reservoirs, deep-water subsurface studies and interpretation of data for production enhancement.“These studies require highly specialised domain knowledge, proprietary or patented software, advanced modelling techniques, research infrastructure and timely delivery capabilities,” he said.The minister noted that only a handful of entities across the world provide such services. One such entity is Beicip-Franlab, which operates under the control of IFPEN (Institut Français du Pétrole Energies Nouvelles), a research and development institute under France’s Ministry of Energy.

He said ONGC has a running memorandum of understanding (last renewed in 2023) with IFPEN for joint research and technical collaboration in hydrocarbon exploration, production and renewable energy.

Clarifying on consultancy contracts, Puri said no contract has been awarded to Beicip-Franlab in ONGC’s North Eastern Region. In other regions, the total value of assignments awarded to the company is less than ₹6.5 crore in the last five years.“This is a miniscule percentage when compared to ONGC’s scale of operations, with the company having an average profit after tax of more than ₹33,000 crore per annum in the last five years,” he said.

Puri further informed that ONGC’s projects are undertaken as per board-approved guidelines, which are in line with the General Financial Rules and the Central Vigilance Commission.