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ONGC asks Swiber units to suspend several projects in existing contracts
SWIBER Holdings on Monday said that India's state-owned Oil and Natural Gas Corporation (ONGC) has sent notices of suspension to its wholly owned unit Swiber Offshore Construction (SOC) and associated company Swiber Offshore India (SOI) in relation to several projects.
These include the C-26 Cluster Pipeline Project; the Daman Development Project; and the Pipeline Replacement Project-4.
ONGC will be entering the relevant sites for the projects, taking charge of the projects and executing the balance work in accordance with the terms of the relevant contracts for the projects.
Accordingly, SOC and SOI have been requested to suspend all activities for the execution of the projects under the existing contracts.
Swiber said: "The execution of the projects has been affected by ongoing legal actions commenced by certain creditors in the India courts against ONGC, SOC and SOI. These actions have caused delays to project timelines, and have prevented ONGC from being able to make payments to complete the projects."
It added: "SOC and SOI will be engaging ONGC and other stakeholders directly to explore other options to complete the projects. The company is also evaluating the impact of the above developments."
It will also later give further updates on the impact of suspension on the judicial management of the company and SOC.