Economy

Crude oil, gas production remain low in September

Our Bureau New Delhi | Updated on October 23, 2020 Published on October 23, 2020

Output of refineries curtailed due to low demand, high stocks of diesel

Domestic crude oil production was 6.05 per cent lower at 2.49 million tonnes while natural gas production was 10.69 per cent lower at 2,293.52 million standard cubic metre, in September, 2020 as compared to the same period last year.

Crude oil processed during September, 2020 was reported at 17.71 million tonnes, which is 8.80 per cent lower when compared with the same period last year. Production of petroleum products during September, 2020 was 18 million tonnes which is 9.49 per cent lower when compared with September, 2019.

Crude oil production was hampered due to Covid-19 restrictions and national lockdowns since essential equipment could not be mobilised from Abu Dhabi for an Oil and Natural Gas Corporation (ONGC) project.

Oil production was also restricted in ONGC’s Rajahmundry Asset due to technical problem in Single Buoy Mooring of Vedanta’s Loading Terminal.

Oil India Limited’s (OIL) output was hit on account of less than planned contribution from workover wells, drilling wells and old wells. There was also a rise in water cut and decline in liquid production from existing wells.

Gas production in the country was hit by low demand by the major customers. It was also hampered because of blockade by locals after the Baghjan Blowout.

Output from refineries was regulated for because of high diesel stock and low product demand due to Covid-19 impact.

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Published on October 23, 2020
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