Ongc Oil Loss Pegged At 100 Tonne Per Day

The Oil and Natural Gas Corporation (ONGC) yesterday said it was losing more than 100 tonne of oil per day from the forced shutdown of nearly two dozen wells in the southern region due to want of consumers for gas produced from these wells.

"Currently about two dozen wells, 16 wells in the Narimanam region alone, have been closed since there were no takers for the gas produced, which results in a loss of more than 100 tonne of oil per day," ONGC's southern region director C P Saha informed.

It is estimated that from these wells 71 tonne of oil per day and 4.05 lakh cubic meter of gas could be produced, he added.

Stating that the wells which are closed are both gas and oil producing, Saha said "while we may exploit the oil and transport it the associated gas that comes along could not be wasted in flaring. So, we wait to match both these."

Until firm commitments for purchase of gas are made or pipelines laid for transportation to other regions, ONGC would not be able to exploit the reserves in the near future, he said.

"We are adding a reserve of around 7 million tonne of oil and oil equivalent of gas every year. The project to bring gas from the Krishna-Godavari offshore fields is in an advanced stage and further development of these fields is contemplated," Saha said.

Last year the region produced 0.5223 million tonne of crude and around 1.5 billion cubic meter of gas, Saha said, adding the target for crude oil production this fiscal has been fixed at 0.8 million tonne and that of gas at 2 billion cubic meter.

Krishna-Godavari basin predominantly produces gas, while it is predominantly oil in the Cauvery basin. However, recent trends show that the former is capable of producing substantial oil like in Kesanapalli and the latter capable of producing a good amount of gas like in Ramanathapuram, he said.

Saha said extensive surveys were being undertaken to develop the Ramnad area of Tamil Nadu into a full-fledged gas producing zone and more deepwater wells are to come up in the Eastern coast.

"The Ramnad area remained untapped for a long period. Out of the 11 wells here, nine are hydrocarbon bearing. Further efforts for delineating the fields were being taken up in the Palk Bay and Gulf of Mannar. These will put Ramnad on the gas map of India," he said, adding the area alone could produce around 1 billion cubic meter of gas annually.