State-run energy explorer, Oil and Natural Gas Corporation (ONGC) has reversed its earlier blanket ban order on all Essar Group entities from participating in its tenders, by issuing an amendment that bars only one entity in the Essar group - Essar Oilfield Services India (EOSIL).
This development comes in light of Mumbai-based metal-to-shipping conglomerate Essar Group approaching the Bombay High Court against state-run energy explorer’s decision to keep the business house out of its offshore oil services tenders worth $2 billion.
The company’s earlier order was a blanket ban on all Essar group entities, as the latter conducting a clear breach of contract did not provide the former with a rig for operational work in one of its blocks in the KG basin after the tendering process had been duly completed. However, Essar late moved the Bombay High Court against the company, stating that the former was not given a chance to explain its position before the harsh decision.
