GUWAHATI, June 14 � The ONGC Assam Asset has suffered heavy production losses due to the indefinite shutdown of Numaligarh Refinery Ltd (NRL) for upgradation of its products to BS-IV standards. NRL had initially undertaken the shutdown for 60 days starting from March 16.
Accordingly, the refinery was to resume normal operations from May 16. But even after one month had elapsed after the notified day, the operation at NRL is yet to resume. ONGC is supplying crude oil to Numaligarh Refinery, Bongaigaon Refinery and Guwahati Refinery through Oil India Limited.
According to a press release, ONGC Assam Asset was producing 3700 cubic metres of crude oil and 11.4 LSCM of natural gas prior to the NRL shutdown. The production was sustained till April 28, 2010 after which the production had to be curtailed due to high stock situation.
The situation has come to such a pass that the Assam Asset of ONGC has been forced to reduce the production to 2375 cu m of crude oil and 10 LSCM of natural gas. Over the last 45 days, ONGC Assam Asset has lost approximately 20,000 tonnes of oil production.
As on date, 121 wells of ONGC in Assam had to be closed due to this situation. What is of serious concern is that the oil fields of ONGC in Assam are very old and plagued by the depleting reservoir pressures. There is apprehension that the closed wells may not come back to the original flowing conditions, the release said.
According to Dr PSV Rao, ED-Asset Manager of Assam Asset, the real challenge will be in reviving these closed wells. ONGC is gearing up to employ all the resources available at its command to revive the closed wells, he said.
A senior ONGC official said even after normalisation of NRL operations, it will take almost four to five months to bring the stocks to normal operating levels.
This prolonged reduction in production is set to result in a huge financial losses to the Company as well as the State and Union exchequer, the release added.
