Financial Daily from THE HINDU group of publications
Wednesday, May 18, 2005
Financial Daily from THE HINDU group of publications Wednesday, May 18, 2005 |
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Corporate
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Performance Bandh hits ONGC output in Assam Our Bureau
New Delhi , May 17 THE production of oil and gas by ONGC in Assam has been severely affected due to the 100-hour bandh by the All Assam Students Union (AASU). ONGC produces about 1.55 million tonne of oil and 467 million standard cubic metre of gas in the State. Due to the bandh ONGC has been forced to shut down the producing wells in all its fields in the State starting 5 a.m. on Monday. The fields, which have been badly affected, are Geleki, Lakwa, and Rudrasagar where the shift crews were not permitted to go and operating crews were forcibly asked to shut down operation and move out, a company release said. Operations of industries in Assam, which draw gas from ONGC, are likely to be affected due to the bandh, the company said. ONGC is trying to convince the AASU representatives on the adverse affect of closing of wells on the reservoir and safety precautions that need to be taken. Many of ONGC wells are on artificial lift technology for production as the fields are aging and these wells cannot produce on their own. These wells may never be revived when operations are resumed, thereby resulting in irrecoverable loss of production as well as revenues to the State. ONGC has requested the State Government to help in maintaining normal operations, safety of personnel, installations and machinery. The amount of royalty accrued/paid by ONGC to the State Government during 2003-04 was Rs 211.74 crore. Recently, it unveiled a plan to revive and rejuvenate its assets in Assam entailing an investment of Rs 2,000 crore over a four-year period beginning this year.
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