Gas leaks have been reported at the Gujarat's Hazira gas field, giving rise to fear of a blow-out.
The field is being developed by Canada-based Niko Resources and is estimated to have in-place gas reserves of one trillion cubic feet.
Uncontrolled gas has been reported to be leaking from the sides of the casing while drilling a well. Possibility of poor cementing of the well is being held responsible for the leak.
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Industry sources say that in case the gas leakage remains uncontrolled and it catches fire, there is every possibility of a blow-out of a large magnitude. The blow-out could be as big as the recent one at a Bombay High field of the Oil and Natural Gas Corporation.
Niko Resources is reported to have engaged an American company for advice on preventing a blow-out. The American experts have already reached the site.
All these expenses will be added to the project cost, reducing the quantum of `profit oil' that should flow to the government.
Earlier this year, a gas well at Bombay High had caught fire resulting in the collapse of a Rs 44 crore platform. It had taken ONGC nearly three months to put out the fire, which had cost the country around $30 million both in terms of loss in production and the expenditure on equipment needed to control