The Hindu Business Line : ONGC revenue loss at Rs 19 cr per day due to Hazira flooding

Mr R.S. Sharma, Chairman, ONGC, says that the revenue loss due to flooding at Hazira stands at Rs 19 crore per day. He further adds that the supply of gas to GAIL has been disrupted. Excerpts from CNBC-TV18's exclusive interview with Mr R.S. Sharma:

Give us an update on the situation in Hazira

As on Friday morning, there was still water of about 3 feet in the plant. Our operational teams are ready to start the clean-up operation as soon as the water recedes.

What would be the total losses because of the disruption in operation for the last few days, which continues today?

The revenue loss works out to about Rs 19 crore a day. We have not worked out its impact on profit. But we are more concerned about the downstream industries and the gas supply. So we are all prepared to adjust that.

The news is that you cut down from about 91 MMSCD to about 40 MMSCD on the Hazira-Bijaipur-Jagdishpur (HBJ) line. How much gas have you been able to supply currently? How many days would it take to restore this after the water recedes?

We have been producing and supplying about 40.5 million square cubic meters a day, which has been totally stopped. Out of the 40.5 million, 27-28 million is ONGC's gas, which comes from Bassien field and the rest is from Panna-Mukta-Tapti.

Could you give us a list of companies which could be worst affected by this disruption in supply?

GAIL could be impacted because we supply gas to it. GAIL would definitely have to prioritise its supplies now. First of all, HBJ pipeline is full.

They should be able to take this non-supply for a few days but I will not be able to address how long it will take. But there is an alternative supply to HBJ pipeline from Dahej too, which is PLL Petronet LNG Ltd's regassified gas.

Would you need to invoke an insurance cover?

We have an insurance cover and we have notified the insurers. We are not much concerned over that; we will carry out the repair on actual reimbursement basis that will be paid by the insurers.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Gas price formula: Govt looking at alternatives

Novartis challenges rejection of patent application

Revised de-merger may help GE Shipping get ONGC nod

LIC Housing Fin to launch deposit scheme

Infosys `never sought favours from Govts'

Nothing much happens in a quarter: Damodaran

Bhagyangar India plans Rs 325-cr capex

ONGC revenue loss at Rs 19 cr per day due to Hazira flooding