Falling domestic crude oil output from ONGC’s fields and growing petroleum product demand has compelled refiners to import almost 15 per cent more crude oil in October year-on-year.

Falling domestic crude oil output from ONGC’s fields and growing petroleum product demand has compelled refiners to import almost 15 per cent more crude oil in October year-on-year.

The refiners (18 public sector and two private sector) imported 14.315 million tonne of oil (12.463 million tonne in October 2011). Reliance Industries does not share planned targets and production data for its export orient refinery in Jamnagar.

The petroleum product demand in October was up 6.4 per cent annually. To cater to the growing petroleum product demand, the refiners turned 20.292 per cent more crude oil into fuel during the month.

According to the Petroleum Planning & Analysis Cell (PPAC), the consumption estimates represent the market demand and is aggregate of sales by oil companies in the domestic market and consumption through direct imports by private parties. While the data for company sales were actual, that of private direct imports are estimated, it said.

The crude oil output during the month under review was down 0.4 per cent year-on-year mainly on account of 6.8 per cent dip in production from ONGC’s Mumbai offshore fields, according to the PPAC data released by Petroleum & Natural Gas Ministry today.

The country’s natural gas output has fallen 14.9 per cent for the 23rd straight month in October mainly because of continued drop in production from the country’s largest gas fields in the East coast operated by, Reliance Industries. The gas production from offshore fields including D6 fell by almost 17.8 per cent in October year-on-year.

According to the data, oil and gas production in Reliance Industries operated KG-D6 block is much less in D1, D3 and MA fields’ vis-à-vis the field development plan approved rates. Total six wells in D1,D3 and two wells in MA have ceased to flow due to water/sand ingress.

The Minister of Petroleum & Natural Gas M. Veerappa Moily informed Lok Sabha that the average gas production from KG-D6 block during the current year (2012-13 up to October 2012) was about 29.81 mmscmd as against the 86.73 mmscmd approved field development plans of D1, D3 and MA fields.

(This article was published on November 27, 2012)
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