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Planet Ark World Environment News - in partnership with Colonial First State Oil, gas spillage at ONGC's western Indian well

Date: 11-Dec-01
Country: INDIA

But officials at the Oil and Natural Gas Corp (ONGC) said the more than 300,000 litres of oil that had spilled out of the well posed no environmental hazard.

The amount of gas released was "not even one-tenth of permissible (emvironmental) limit," S.K Jain, ONGC's personnel and administration general manager, told Reuters. Fire crews were standing by to extinguish any possible blaze.

The exploratory well, SK-108, 50 km (30 miles) south off Ahmedabad, Gujarat's main city, had been spilling natural gas and oil from late Friday, Jain said.

"We will know by (Tuesday) evening how long it will take to control the leak," Jain said.

The spillage was caused by the cracking of a pipe inserted to test the reserves.

Drilling experts were trying to pump mud into the well to reduce the intensity of the oil flow.

"The well is still flowing and drilling and safety experts are trying to plug the leak," Jain said.

The oil was being directed to pits dug for the purpose to minimise loss. "There has not been much loss of oil. Oil collected in the pit are being loaded on to trucks for refining," Jain said.

Company officials said gas continued to leak out of the well but there was no cause for alarm.

"Nothing specific is being done to stop the gas leakage. Sealing the breach of the well will also stop gas," Jain said.

The company has cordoned off the area around the well.

Some 100 drilling, safety and environmental officials of ONGC were camped at the site of the well and monitoring the situation, he said.

Officials said it was not known how much oil and gas reserves were in the well but the spillage was unlikely to affect future exploration and production activities.

"It's a promising well and once the crisis blows over exploration and production will continue," Jain said.

ONGC shares ended at 140.50 rupees, down 1.09 percent from Friday's close of 142.05 rupees while the main Bombay share index closed up 0.19 percent.

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