SHIV VANI: Using Quippo as 'front' for ONGC bid

Vol 18, PW 16 (09 Apr 15) Exploration & Production

Despite its blacklisted status Shiv Vani is still trying to win ONGC tenders through the back door.

A source close to Quippo Oil and Gas tells us the company's bid in ONGC's tender to shoot 250-sq km 3D at the Baramura Bulge area in Tripura is little more than a Shiv Vani bid in disguise. Quippo, we learn, is bidding in partnership with Kazakhstan-based TatArka LLP.

Quippo and TatArka's partnership dates back to a MoU signed on September 5, 2014 arranged by Shiv Vani. This isn't the first time Shiv Vani has tried to get Quippo to sneak its bid into an ONGC tender.

Quippo had similarly signed a MoU with Russia's Irkutskgeofizika on August 25, 2014 to bid for ONGC's tender to shoot 2010-lkm 3D in Andhra Pradesh. Again that MoU was fixed by Shiv Vani.

"Padam Singhee (joint MD and executive director of Shiv Vani) is very close to Sunil Kanoria (vice chairman) of Quippo/SREI Group," reveals a source. "Singhee convinced Kanoria to loan Rs200cr ($33m) as working capital to Shiv Vani to run its business.

Kanoria has no choice but to support Shiv Vani to recover his money." Shiv Vani also worked out a deal in September 2013 in which Quippo markets onland rigs owned by Shiv Vani.

Calls made to Prem Singhee, chairman of Shiv Vani seeking a comment were not answered.

Sunil Kanoria, when contacted confirms that Shiv Vani is behind its entry into the seismic acquisiton business. "They (Shiv Vani) have the expertise for that (seismic) business," says Kanoria. "They didn't have the financial muscle to bid for the tenders and have arranged international partners for us to bid for opportunities whenever they come." Kanoria refused to confirm or deny if SREI has loaned Rs200cr working capital to Shiv Vani. "Shiv Vani is having financial difficulties," he adds. "We are marketing their rigs to make some money. Its a normal course of business. We have marketed their rigs in the past as well." Prakash Singhee, brother of Shiv Vani chairman Prem Singhee, is participating separately in the same ONGC tender to shoot 3D at Baramura Bulge, issued for the second time on November 25, 2014 and where bids were accepted on January 8.

SHIV VANI: Using Quippo as 'front' for ONGC bid

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