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CCI rejects complaint against Schlumberger Asia Services

Last Updated: Thursday, February 7, 2013 - 18:06

New Delhi: Fair trade regulator CCI has rejected a complaint that alleged Schlumberger Asia Services had indulged in anti-competitive practices while bidding for an ONGC contract.

Oil & Natural Gas Corporation (ONGC) had issued a tender last year for services, including wireline logging and perforation for its entire off-shore and on-shore areas of operation for a period of 3 years.

Schlumberger Asia Services and one H L S Asia had submitted bids for the tender.

In its complaint, H L S Asia, had alleged Schlumberger Asia of indulging in "predatory pricing" in its bidding offer for the tender. This it said could have an adverse impact on competition in the market.

However, in its order issued yesterday, CCI observed that "that no prima facie case was made out in this case".

"...Informant lost in a bidding process to an efficient competitor who had quoted a price that was not only lower than the ONGC estimates but also lower than previous year's price quote," it said.

H L S Asia had said that "in order to grab almost the entire business of ONGC in wireline logging and perforation services" Schlumberger Asia quoted prices of most of the standard services "ridiculously low" and increased prices of highly technical services.

The complainant had also asked CCI to direct ONGC to award part of the work to it on the basis of its bid.

In its submissions, ONGC had brought in notice a letter it received from H L S Asia seeking contract on the same rates on which Schlumberger Asia had given its bids without saying that these rates were predatory or would result in loss.

"...Informant lost the contract in a competitive bid and after it lost the contract, it raised the issue under Competition Act without there being any substance," CCI said.


First Published: Thursday, February 7, 2013 - 18:06
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