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Oil India reports production loss due to protests in Baghjan

Guwahati, Jun 24 (PTI) PSU major Oil India on Wednesday said it continues to lose production due to protests that started after a gas well in Baghjan caught fire, following a major blowout.

In a statement, the company said there was an output drop of 103 MT of crude oil and 0.14 MMSCM of natural gas on Tuesday due to disruptions in 15 oil wells and one gas well.

'Cumulative production loss since May 27, 2020 due to bandhs and blockades: 8,394 MT crude oil, 10.7 MMSCM of natural gas,' it added.

Oil India Ltd (OIL) said protests at Baghjan are still underway in a few areas and production in wells continue to be blocked, resulting in loss of output with drilling and workover operations disrupted at four locations.

Besides, the movement of men and material to the site has been affected due to a strike in Tinsukia during the day, it added.

On June 21, the company had said most of its wells in Baghjan, which were shut due to agitation by locals, started operations after hammering out a solution at a tripartite meeting on the previous day between Tinsukia district administration, OIL and Baghjan Gaon Milanjyoti Yuva Sangha, a local group representing those affected.

Meanwhile, Petroleum and Natural Gas Secretary Tarun Kapoor visited Baghjan blowout site on Tuesday along with OIL Chairman and MD Sushil Chandra Mishra and other directors to take stock of the situation.

After visiting the relief camps at Baghjan, he held a detailed discussion with the district administration on the next course of action.

'Today morning, Kapoor sat with the experts from Alert Disaster Control, V P Mahawar, Ex-Director (Onshore), ONGC and teams from OIL and ONGC to understand the plan of capping the well,' the statement said.

On the process to douse the blaze, OIL said the fabrication of the Blowout Preventer (BOP) skid and three additional heat shields have been completed, while the fabrication of heat shields for bulldozer and excavator is in progress.

The company is developing an area for constructing a temporary workshop facility at the well site and the civil work is over.

Over 9,000 people are staying in 13 relief camps after the well suffered a blowout on May 27 and subsequently caught fire earlier this month.

The company stated that various assessments and studies are being conducted on the impact of the blowout as well as the blaze.

Two of OIL's firefighters have died in the fire. PTI TR SOM SOM