ONGC to temporarily stop KG basin supplies

Gas and oil supplies from the Krishna-Godavari (KG) basin of the Oil and Natural Gas Corporation (ONGC) to the Gas Authority of India Limited (GAIL) may temporarily be shut down.

The temporary shutting down of supply to GAIL is being attributed to acts of lawlessness at Narsapur and its adjoining areas by some miscreants, who include some former contract guards of a security contractor previously hired by ONGC.

ONGC in a press release said that GAIL was in turn, free to inform all its customers about the disruption in supplies. GAIL supplies gas to fertiliser units, general industries and importantly power plants in the region.

"Due to the ongoing agitation by miscreants at our Narsapur supply base and other installations in the area, ONGC's operations are severely affected and gas production has already been reduced from 29 January. It will be further reduced drastically if the situation is not allowed to improve," the press release said.

"The protesters had earlier approached the courts for regularisation of their services in ONGC, but the Andhra Pradesh High Court rejected a petition filed by them. Frustrated by the developments these individuals have now taken the law in their own hands and now are blocking entry to the ONGC premises/work centres situated in and around Narsapur," it added.

Taking a view on the situation, the AP High Court in a order dated 29 January has directed the district authorities to ensure that no obstruction is caused to the movement of ONGC men and material.

There is, however, no improvement in the situation even after the said order was served. According to the press release, the continuation of lawlessness at Narsapur has now forced ONGC to mull shutting down exploration and production operations.