Turkey - 01

Turkey: Emboldened Court of Accounts Targets TPAO and BOTAS

On 19 June TPAO was given a shock when the Turkish Court of Accounts ordered the retroactive cancellation of the company’s March 2011 public tender to acquire a seismic exploration ship for use in the Black Sea and along the Mediterranean coast. According to the court, TPAO had prematurely and illegally canceled the initial tender and awarded it to geophysical services company CGG Veritas Service SA without due competitive process. Veritas had initially offered $14.06mn, which was considered too high; instead of entering a second round of bidding, TPAO canceled the bid and Veritas immediately submitted a reduced offer of $8.77mn. The court asserted that this price reduction was illegal and that the bid’s premature cancellation resulted in an artificially high price for the transaction.

To continue reading, please submit your contact details along with a short message below indicating what you'd like to learn more about and we'll get back to you.