Page 4 - AsianOil Week 24
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AsianOil SOUTH ASIA AsianOil
OIL’s production drops in
wake of well blowout protests
PROJECTS & STATE-OWNED Oil India Ltd’s (OIL) oil and
COMPANIES gas production has been hampered by protests
in Assam State over an ongoing fire at the com-
pany’s Baghjan natural gas and condensate field.
The company experienced a blowout at the
field on May 27, which led to “uncontrollable”
flows of petroleum, after it tried to bring a new
reservoir on stream. The well caught fire on June
9, killing two company firefighters and destroy-
ing roughly 30 homes.
OIL’s inability to cap the well has led to pro-
testors gathering at both drill sites and worko-
ver locations, with the company saying on June
17 that the unrest meant it had been unable to
produce a total of 6,132 tonnes (44,950 barrels) than 7,000 residents that have been relocated
of crude and 7.97mn cubic metres worth of gas because of the blowout.
since May 27. Assam Chief Minister Sarbananda Sonowal,
The gas leak and subsequent fire, which meanwhile, said a veterinary hospital, a second-
spread several hundred metres from the well, has ary education school and a skill development
affected the nearby Dibru-Saikhowa National centre would be set up in Baghjan. “Today I
Park (DSNP) and Maguri Motapung wetlands. announce that the Baghjan embankment will be
As a result, ERM India is conducting an environ- constructed at a cost of INR270mn ($3.6mn),”
ment and ecological survey within the vicinity he said.
of Baghjan, including the DSNP and Maguri Pradhan said both the federal and state govern-
Motapung. ment were working on ways to avoid a repeat of the
Indian Minister of Petroleum and Natural disaster, while also pledging to bring those respon-
Gas Dharmendra Pradhan promised on June 14 sible to justice “even if he is a powerful man”.
that the government would “adequately” com- Two company officials have already been sus-
pensate those affected by the blowout. His com- pended over allegations of negligence, while pri-
ments were made during a visit to one of the 14 vate well operator John Energy has been served
camps that have been set up to house the more with a show-cause notice.
Indian gas reforms to spur LNG adoption
POLICY THE launch of India’s first natural gas exchange, Regassified LNG will be sold directly to buy-
coupled with recent changes to regulations gov- ers, with the Indian Express quoting IGX direc-
erning liquefied natural gas (LNG) refueling sta- tor Rajesh Kumar Mediratta as saying on June
tions, should help boost the super-chilled fuel’s 16 that the move meant buyers no longer had to
market penetration. “contact multiple dealers to ensure they find a
Indian Minister of Petroleum and Natural fair price”.
Gas Dharmendra Pradhan launched the Indian Buyers and sellers are also expected to ben-
Gas Exchange (IGX) on June 15. Multiple buy- efit from greater contract flexibility, with the
ers and sellers can now use the digital trading exchange allowing contracts for next-day deliv-
platform to trade in spot and forward contracts ery alongside the more traditional long-term
for delivery at three physical hubs — Dahej and supply deals.
Hazira in Gujarat State, and Kakinada in Andhra The local daily also quoted unnamed IGX
Pradesh State. officials as saying that a highly liquid gas
State-run Petronet LNG has a 17.5mn exchange could encourage the government to
tonne per year import terminal at Dahej, adopt reforms for the pricing of domestically
Shell operates a 5mn tpy facility at Haz- produced gas. The central government sets
ira and gas production from the offshore prices every six months using the weighted
Krishna-Godavari (KG) is exported via average price of gas in hubs in the US, Canada,
pipeline to Kakinada. the UK and Russia. New Delhi slashed prices
P4 www. NEWSBASE .com Week 24 18•June•2020
