PMO questions falling gas production

Vol 11, PW 10 (20 Sep 07) News in Brief

Concern over falling domestic gas production from April to June has prompted the Prime Minister’s Office (PMO) to ask for an explanation from the oil ministry.

In a late August note, the ministry said gas production dropped by 386m cubic metres to 7739m cubic metres for four reasons: A planned shutdown during April to June at Mumbai High’s SH platform saw production fall by 113m cubic metres A problem with process gas compressors at SH platform in June saw a shortfall of 70m cubic metres Natural decline in production from ageing gasfields, especially Bassein, and “partially Neelam, B-173 and fields in Gujaratâ€‌ Water and sand encroachment in some wells has also hit gas productionONGC has been “maintainingâ€‌ production mainly from its “ageingâ€‌ fields, said the ministry. “Worldwide trends show that ageing fields have an annual decline rate of between 7% and 8%.

â€‌ Efforts will be taken, said the ministry, “to make good this loss of production during subsequent quarters in the current year.â€‌