In line with the CAG, ONGC misplaced Rs 11,276 crore because of lack of water injection.

In line with the Comptroller and Auditor Common of India (CAG), India has misplaced over Rs. It misplaced 3.8 million tonnes of crude oil price Rs 11,276 crore. ONGC’s previous Mumbai Excessive, Neelam and Heera fields on the Mumbai coast have been depleted and water is being saved in wells to extract the remaining oil. The CAG stated in a report back to parliament on Thursday that “there may be not sufficient water injection”.

The CAG stated the loss couldn’t be thought-about a deferred product however that the oil was a everlasting loss. “Moreover, even exploiting a portion of this oil deficit would require further funding and a overview from an financial oil restoration viewpoint,” it stated. Mumbai Excessive, Neelam and Hira fields account for 59 per cent share in ONGC manufacturing. Mature fields working since 1976 and 1984, respectively, are more likely to expertise a decline in manufacturing. The CAG stated the scarcity of water injection was a big issue within the decline in crude oil manufacturing. The CAG stated the scarcity of water injection was a big issue within the decline in crude oil manufacturing.

“Water injection within the subject is affected by the ageing of the injection infrastructure, frequent pipeline leaks because of lack of injection water high quality, non-implementation of feasibility report inputs and manufacturing from considerably larger gas-oil ratio wells”. This vastly lowered the reservoir stress and affected crude oil manufacturing. “… This water scarcity has resulted in a lack of Rs 7,802.50 crore to ONGC and a income lack of Rs 3,474.29 crore to the Authorities of India by means of authorized levies in the course of the audit interval (2014-15 to 2018-19),” it stated.

3.79 million tonnes of crude oil couldn’t be produced in the course of the audit interval because of low water injection. “The worth of three.79 million tonnes of oil deficit rose to Rs 11,276.79 crore because of low water injection. Of this, after contemplating the authorized taxes, the oil deficit worth to ONGC was Rs. 7,802.50 crore and the remaining Rs. 3,474.29 crore as income loss to the Authorities of India. The CAG acknowledged that the reservoir stress had been repeatedly declining because of inadequate water injection from the beginning of the fields, which had an affect on crude oil productiveness and its remaining restoration. “Reservoir stress drop is additional elevated because of excessive gasoline manufacturing from the reservoir,” it stated.

“The Ministry’s periodic suggestions on the significance of water injection, its distribution and reservoir well being administration (oil) haven’t been totally carried out”. ONGC’s Efficiency Benchmarking Group doesn’t benchmark the important thing efficiency indicators of ‘Reservoir Well being’ with the world’s main exploration and manufacturing corporations. “As a substitute, it has set fastened targets based mostly on the inputs obtained from its strategic enterprise models. Moreover, with impact from 2019-20, the parameter ‘Reservoir Well being’ indicating an absence of oversight over reservoir well being by administration is just not a part of the efficiency settlement. Scarcity of water injection to cut back crude oil manufacturing. Cogg stated that was an vital issue.

Information abstract:

  • In line with the CAG, ONGC misplaced Rs 11,276 crore because of lack of water injection.
  • Try all of the information and articles from the newest enterprise information updates.
Disclaimer: If you want to replace / edit this text, please go to our Assist Heart. Comply with us for the newest updates G.OOgLE News

Source link

Leave a Comment

%d bloggers like this: