Oil India seeks Assam’s help to fight bandhs

Bogged down by frequent bandhs and local disruptions, Oil India Limited (OIL) has sought the intervention of the Assam government in dealing with the situation which has been affecting the operation of the public sector company.

Disclosing that OIL has incurred a loss of around Rs 45 crore because of frequent disruptions in the state, the chairperson and managaing director of OIL, Utpal Bora, told reporters here on Sunday, “Disruptions and bandhs in operational area causes long-term damage to the reservoir and disturbs the flow of oil and gas from the well.”

He also said that OIL has announced a Rs 50 crore start-up fund to foster, nurture and incubate new ideas related to the oil and gas sector. OIL is partnering with IIT-Guwahati, which will provide idea incubation in this regard, he added.

Mr Bora said, “We raised the matter with CM Sarbananda Sonowal, and he assured us security and assistance.”

Mr Bora regretted that OIL is grappling with falling production of crude oil, which has come down from 3.8 million metric tonnes per annum (MMTPA) in 2010-11 to 3.24 MMT in the last financial year.

He, however, attributed it to matured and ageing oil fields. “At least 30 per cent of the wells out of 1,500 flowing oil fields are non-flowing,” he said.

OIL has also sought deployment of additional security forces and patrolling by the state police force in the operational areas to check the damage of its property by the miscreants.

“Miscreants are causing damage and theft of oil properties. It has become an area of concern for us. It was not possible to guard all the oil producing areas by our own security personnel,” Mr Bora said.

A senior executive of the OIL pointed out, “In some cases it has come to our notice that miscreants create holes in the product line to commit theft. Even in the process of replacing the gas flow lines, pipes are stolen.”Indicating that some organized gang of miscreants are involved in such crimes, the senior executives of the PSU pointed out that even valves and Christmas-tree erected to control the flow of the oil in the well are stolen. He regretted that such frequent snags result production loses.