Oil India suffers daily production loss of ~500 KL from affected Baghjan EPS wells, stock slips 2%

The cumulative loss is 3457 MT of Crude Oil and 11.41 MMSCM of Natural Gas in last eight days due to blockades and stoppages.

Jul 16, 2020 01:07 IST India Infoline News Service

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Oil India Limited informed the exchanges Thursday that all major debris have been cleared from the well plinth. A detailed inspection of the well was undertaken today jointly by Alert, ONGC & OIL technical team to decide the next course of action.

The preparations for the capping of the oil well in Bhagjan, Assam are on war footing mode. The Well had suffered blowout on May 27 and was followed by fire incident on June 10. The recent floods hampered the work.

Oil India Ltd is currently trading at Rs93.60 down by Rs2.15 or 2.25% from its previous closing of Rs95.75 on the BSE.

“Water reservoirs are being filled up periodically. All three ONGC & OIL CMT Water Pumps are ready for delivery and are in use dependinq on requirement. Water Pump Station #01 & #2 are in operation,” company said.

Blockade still continues at Baghjan EPS. Due to the blockade, four gas wells and eight oil wells under Baghjan EPS had to be shut since July 7, 2020. As a result, approx. 1.5-1.6 MMSCMD gas has gone out from the grid which ultimately led to curtailment of gas supply to all consumers. Additionally, there is a daily oil production loss to the tune of around 500 KL from these wells. The cumulative loss is 3457 MT of Crude Oil and 11.41 MMSCM of Natural Gas in last eight days.

Blockade at two drilling locations and three workover locations still continues in and around Baghjan area.
Due to stoppage and blockades, there was production loss of 441 MT of Crude Oil and 1.34 MMSCM of Natural Gas .as reported on 14-07-2020. Operations were disrupted in 11 Oil wells & 04 gas wells. Cumulative production loss since May 27, 2020 due to bandhs and blockades: 12657 MT Crude oil, 23.38 MMSCM of natural gas.

Survey job for assessment of damage for compensation in both Tinsukia and Doomdboma Circle is in progress today. Eight more families were surveyed on July 14, 2020 making total  family surveyed in Doorndooma Circle 577. Ninety more families were surveyed on July 14 in Tinsukia Circle 914 making total family surveyed in Tinsukia Circle 914. Total number of families surveyed till July 14 in both Tinsukia and Dooniddoma Circles is 1491.

“As a part of the Environmental Impact Assessment study, ERM team has conducted ecologioal survey in Baghjangaon, Notungaon, Guijan, Dighaltarang area yesterday. The study will be continued WI one week beyond the date of capping the well successfully".

Debris clearance in high land areas are being carried for site preparation prior to bio remediation job. Application of bio material will be started once water level recedes and site preparation is completed in the affected areas,” company said.

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