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Oil continues to slip: Crude output by OIL fell short of target by a big 23.37% in Jan

 Additionally, the overall crude oil production for the month of January stood at 2847.66 thousand metric tonnes (TMT), which was 11.85 percent lower than the target

New Delhi: Crude oil production by state-owned Oil India Limited (OIL) fell short by a big 23.37 percent in comparison to the monthly target in January and was 10.73 percent lower when compared with January 2018, data sourced from the oil ministry has showed. The production figure for the month stood at 254.79 Thousand Metric Tonnes (TMT). The state-owned oil company had recorded a 4.66 percent decline in December last year. Additionally, the overall crude oil production for the month of January stood at 2847.66 TMT, which was 11.85 percent lower than the target and 4.33 percent lower when compared to January 2018.

The oil ministry attributed the fall in production to bandh and ‘miscreant activities’ and less than planned contribution from work over well and drilling wells
The trend is in line with the slump that has been continuing for the past few months. India’s overall crude oil production in December 2018 had fell 4.3 per cent to 2,862 TMT. During April-October 2018, India had recorded the lowest output at 20,294 TMT in the past seven years during the same period.

Ministry attributes fall in production to Bandh

The cumulative crude oil production by OIL during April-January 2018-19 was 2771.38 TMT, which was 10.39 percent lower than the cumulative target and 2.22 percent lower when compared to the corresponding period of 2018. The oil ministry attributed the fall in production to bandh and ‘miscreant activities’ and less than planned contribution from work over well and drilling wells.

ONGC records 12.47 percent fall

State-owned oil major, Oil and Natural Gas Corporation (ONGC), produced 1766.98 TMT of crude oil in January, which was 12.47 percent lower than the monthly target and 3.80 percent lower when compared with January 2018. The cumulative crude oil production by ONGC during April-January 2018-19 was 17675.14 TMT, which was 7.51 percent and 5.41 percent lower than the cumulative target and production respectively during the corresponding period of the last year.

Private sector companies fare slightly better

Data showed that crude oil production by private and joint venture oilfields under PSC (private sector companies) regime during January 2019 was 825.90 TMT, which was 6.07 percent lower than the monthly target and 3.31 percent lower than January 2018. The cumulative crude oil production by private/join ventures during April-January 2018-19 was 8338.73 TMT, which was 2.68 percent and 0.63 percent lower than the cumulative target and production respectively during the corresponding period of the last year.
Around 65 oil wells were closed due to various reasons like high water cut, required work-over-job (WOJ), etc and 30 Mangala wells were closed due to liquid handling constraint at MPT plant
According to the ministry, the deficit in production was caused due to upgradation work at Mangala Processing Terminal (MPT) and 45 infills. Production from Stage-I wells and delay in Stage-II wells in the Aishwarya Barmer Hill (ABH) field (CEIL) also contributed to the decline in production. Around 65 oil wells were closed due to various reasons like high water cut, required work-over-job (WOJ), etc and 30 Mangala wells were closed due to liquid handling constraint at MPT plant.