OIL has earmarked an expenditure of Rs 210 crores to control the blowout an official told this correspondent; and a loss of oil and gas production of around Rs 30 crores due to incident
Tinsukia: Public sector giant Oil India Limited (OIL) is expecting the company's losses from the May 27 gas well blowout in Assam's Tinsukia district at around Rs 240 crores.
"OIL has earmarked an expenditure of Rs 210 crores towards controlling the blowout well under fire," said an OIL official who wished to remain anonymous.
OIL official added that the estimate has factored in services taken by various departments, mobilization of equipment, procurement of material, hiring global experts, running of relief camps, compensation etc. "However, it may change to some extent, depending on the compensation part, which is yet to be finalized."
The "blowout" occurred at the gas well number 5 at Baghjan oilfield while work over operations was going on to produce gas from new sand (oil and gas-bearing reservoir) at a depth of 3,729 metres. It lead to natural gas and condensate oil gushing to a hundred feet in the air and spill all around. Subsequently, the well caught fire on June 9.
When contacted OIL spokesperson, Tridiv Hazarika said, the main concern of OIL is to douse the inferno, control the uncontrolled flow of gas and cap the well. "The expenditure to control it will be calculated once the operation is over."
However, the loss is what we could not produce from the well or the uncontrolled release of gas, which is around 1lakh Standard Cubic Metre per day (SCMD) of gas per day besides the loss of production due to bandhs and blockade which stands to 9156 MT Crude oil and 11.84 MMSCM of natural gas. "This will roughly add upto Rs 30 crores," he added.