The Comptroller and Auditor General of India (CAG) has highlighted several deficiencies in state-owned oil sector company ONGC’s marine logistics operations. According to the central auditing watchdog, ONGC had not planned for an adequate number of offshore supply vessels (OSVs), leading to continued dependence on hired private vessels. The report was tabled in the Parliament last week.
“While acquiring its own OSVs (offshore supply vessels), the Company awarded contract to Pipavav Shipyard which was selected solely on the basis of the experience of their foreign technical collaborator. The contractor delivered only seven of the 12 OSVs with a delay of more than six years. This led to continued dependence on hired vessels,” the CAG report pointed out.
The CAG went on to point out that the Offshore Logistics Group of Company had proposed required vessel strength for a three year period, but did not consider the updated Annual Drilling Plans. The resulted in “disproportionate estimate of vessel requirement, it said. “The shortage of OSVs during the period 2012-13 to 2015-16 was also due to non-inclusion of the requirement of Offshore Defence Advisory Group while estimating requirement of OSVs,” it observed.
The company had also not implemented its consultant’s recommendations on fixed scheduling of vessels to achieve optimum utilisation and economic operation of vessels. “This resulted in redundant trips to offshore duty points. Audit observed that costlier PSVs meant for supply duty were increasingly deployed for standby duty resulting in higher cost of operation,” it said.
The audit also found that the company did not have a cadre of marine professionals for monitoring of vessels. “The owned vessels were operated and maintained through short term contract with Shipping Corporation of India. There was no performance linked penalty in these contracts,” the auditor said.