The Hindu Business Line : ONGC pulled up for `excessive' handling capacity

OIL and Natural Gas Corporation (ONGC) has been criticised by a Parliamentary panel for creating excessive crude handling capacity in Assam, and that too at costs way above estimates.

According to the Committee on Public Undertakings, the upstream oil major had constructed a 1,314 tonne per day (tpd) group gathering station (GGS) at Demulgaon oil field in Assam. However, the actual production at the Demulgaon field in Assam has, "since the very beginning (1985), remained at about 300 tonne oil per day on an average".

According to the report, tabled in Parliament on Monday, the implementation of the GGS project involved a cost escalation to the tune of Rs 15.51 crore as against the original estimate of Rs 2.54 crore.

"Had ONGC exercised adequate care and caution, particularly in matters of planning and designing of the GGS plant, a more appropriate production handling facility could been possibly created at Demulgaon at an acceptable cost within a reasonable time-frame", the Committee noted.

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