The OGDCL’s $80 million bid saga in Uch

The bid for a compression plant in Uch has become a bone of contention with current and former officials of the company lobbying for different groups

For the past 10 months, a cold war has been looming within the Oil and Gas Development Company Limited (OGDCL). The bone of contention is an $80 million contract for a compression project in phase II of the Uch gas fields that OGDCL controls. 

Ever since the company first invited investors to make bids for the plant it has been a sordid tale filled with bidding wars, rival groups within the company, former employees working as lobbyists, and a complete disregard for proper procedure. 

So what is going on? Essentially, two different consortiums applied for bids for the compression plant. The first one was a joint venture between Sui Northern Gas Pipelines Limited (SNGPL) and Presson Descon International. The other was also a joint venture between Hong Kong HuiHua Global Tech. Ltd. and a local company called the AJ Corporation. 

Initially, it seemed that the bid was going to go to the consortium formed by SNGPL and Presson Descon. However there has been strong lobbying from former officials of the OGDCL that hold significant influence within the company despite being retired. As a result, it now seems that the contract will go to the second consortium despite it not meeting the criteria required and being what is none as a ‘non-responsive bidder.’

Before we get into the specifics it is important to understand what the OGDCL is, what it does, and the significance of this project in which the blatant disregard for corporate ethics has been on full display.

 

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Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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