industry

Another two months needed to kill damaged Baghjan gas well: Oil India chief


GUWAHATI: Sushil Chandra Mishra, Chairman and Managing Director (CMD) of Oil India Limited (OIL) stated it will take another eight weeks to kill the gas producing well in Baghjan in Tinsukia district. Following the incident OIL has rehearsed the Stand operating procedure (SOP) pertaining to well operations.

The gas producing well blew out on May 27. It exploded into a massive inferno on June 9. OIL also plans to come up with relief well in the vicinity.

Mishra, while addressing media persons virtually on Tuesday, said: “Things are under control at well site. We have managed to divert the gas and there is no fire at the blow out well.”

He added that OIL is getting a snubbing unit from Canada for killing the well. “ This may take another three to four weeks and we will need another three to four weeks to get things here.”

The well was producing 80,000 Standard Cubic Metre per day (SCMD) of gas and due to forced closure of wells, OIL has incurred losses to the tune of Rs 179 Crore. Around 22 wells were shut down.

Mishra said that in the exploration and production industry, incidents do take place. “We have an elaborate SOP however after the Baghjan incident the SOP is reviewed, modified and made in tune with the changed working conditions. There are around 1, 150 parameters in the SOP.”

He said that around Rs 70 Crore compensation will be paid out to those affected due to blow out. “ The extent of the blow out was big and our safety team is strengthened following the incident.”

Mishra said as mandated OIL will increase its share in Assam based in Numaligarh Refinery Limited (NRL). He said, “ We are looking for other avenues where we can venture.”

OIL stated it will reach the target depth of around 3.5 Kilometres beneath the surface of the National Park without carrying out any drilling activity inside the national park.

Ministry of Environment, Forest and Climate Change (MoEF&CC) had accorded environmental clearance for extension drilling & testing of Hydrocarbons at seven locations under Dibru-Saikhowa National Park Area, North West of Baghjan PML in District Tinsukia in the state of Assam to OIL.

Mishra said, “We are in no way touching the park area and will be away by at least 2 km.”

The CMD said that it has been a challenging year for OIL as profit after tax marginally declined. “We will increase gas production as per the requirement of the consumer. In recent months our consumers like NRL, Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) were consuming less gas.”

He added, “Prices of crude oil were lower, the situation is still grim. We are looking for avenues for vertical integration.”





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