The Hindu Business Line : Crude output down in Oct on power shutdowns

New Delhi, Nov. 23 The country’s crude oil production in October saw a marginal dip on the back of power shutdowns and lower development inputs in oil fields. Almost three-fourths of the crude oil processed by the domestic refiners are imported.

According to an official data, 2.92 million tonnes (mt) – equivalent to 690,438 barrels a day - of crude oil was produced in October 0.1 per cent less than corresponding month last year (2.93 mt). The crude oil output was 2.1 per cent less than the Government’s planned target of 2.99 mt for the month.

The natural gas production was up 2.5 per cent in October when compared with same month last year.

The exploration companies produced 2.84 billion cubic metres (BCM) of natural gas in October, up from 2.77 BCM in the same month last year. However, this was less than the planned target of 2.94 BCM for the month.

Reasons for shortfall

The reasons for the shortfall in oil and gas production, includes power shutdowns in Gujarat and lower developmental inputs in the offshore Mumbai High oil field and surrounding regions.

The production in East Assam was affected due to unspecified environmental reasons and damage to a gas pipeline in a blast in September.

The refiners processed 2.8 per cent more crude oil in October. They processed 12.68 mt of crude oil - or about 3 million barrels a day - in October. The refinery figures are based on a survey of India’s 17 state-owned refineries and two privately-run refineries.

The increase in refinery output is mainly due to commissioning of Essar Oil’s 10.5 million tonnes per annum Vadinar Refinery in November last year and expansion of Indian Oil Corporation’s Panipat Refinery to 12 mt in January.