>ONGC produces about 1.55 million tonnes of oil
and 467 million
>standard cubic metres of gas per day in Assam. The company's oil and
>gas production in Assam has been severely affected due to the 100-hour
>bandh spearheaded by All Assam Students Union (AASU).
>standard cubic metres of gas per day in Assam. The company's oil and
>gas production in Assam has been severely affected due to the 100-hour
>bandh spearheaded by All Assam Students Union (AASU).
I donot know how correct are these
economic figures. This shows that ONGC produces about half of what Oil India
produces in Assam. Anyhow, taking these figures to be correct, let us try to put
some dollars and cents to the Assam's economy to see how much Assam is
getting as Royalty.
1.55 million tonnes per year =
approximately 10.075 million bbl per year (assuming 30 deg API oil)
This equals $503.75 million per
year (@ $50 per bbl present world market rate)
This is what ONGC earns from its Assam
oilfield.
ONGC pays (say) Rs 200 cores per year to
Assam (according to news).
which is about $4.55 million dollars
per year @ Rs 43 per US Dollar.
This means Assam gets only about
$0.45 for each bbl of oil. Or 45 cents per bbl
When oil price is $50 per bbl, this may be
said to be pathetic.
IMHO, Assam should earn at least 10%
royalty which should be about $5 per bbl
or about 10 times more than what Assam is getting now.
If Assam would earn that much, Assam
will earn about Rs 2000 crores from ONGC (instead of Rs 200
crores).
At this rate, Assam will also get about
twice that amount from Oil India.
So Assam should get about $6000 crores oil
royalty from OIL and ONGC annually.
Please note the above is just an
approximation ignoring gas production and others.
At least we should make it a basis of
discussion with GOI.
Whatever it is, the math is very clear. We
donot need independence, all we need 10% royalty.
Now I donot know if Assam ever asked
anything to GOI or put any basis for its asking.
Interestuingly I did not see any demand
even in the famous Assam Accord anything to increase oil royalty.
Does anybody know what Assam is demanding
during last 50 years?
Looks like we need an NGO just to presnt
this case from the Assamese public.
I think it makes sense.
Rajen Barua
----- Original Message -----
From: "Ram Sarangapani" <[EMAIL PROTECTED]>
To: "Assam" <assam@pikespeak.uccs.edu>
Sent: Tuesday, May 17, 2005 5:17 PM
Subject: [Assam] ONGC feels the heat in Assam row
-Telegraph
> OUR SPECIAL CORRESPONDENT
>
> Oil on the boil
> New Delhi, May 17: ONGC has been forced to shut down all its oilfields
> in Assam with AASU activists driving the oil major's crew out of the
> operational areas. The state government has refused to intervene.
>
> According to an SoS received at the ONGC corporate headquarters here,
> the company's operations ground to a halt at 5 am on Monday.
>
> The fields that have been badly affected are Geleki, Lakwa,
> Rudrasagar, where shift crews were not permitted to go and operating
> crews were made to shut down operations and move out.
>
> When ONGC contacted the local authorities for help they expressed
> their inability to intervene for fear of confrontation.
>
> Several ONGC wells in Assam are on artificial lift technology as the
> fields are ageing and the wells cannot produce on their own. These
> wells may never be revived when operations are resumed, resulting in
> irrecoverable loss of production as well as revenues to the state.
>
> ONGC produces about 1.55 million tonnes of oil and 467 million
> standard cubic metres of gas per day in Assam. The company's oil and
> gas production in Assam has been severely affected due to the 100-hour
> bandh spearheaded by All Assam Students Union (AASU).
>
> Industries in Assam which draw gas from ONGC are also going to be
> badly affected due to the disruption in supplies.
>
> ONGC personnel are trying to convince the AASU representatives on the
> adverse effect of closing down wells on the reservoir and the safety
> precautions that need to be taken.
>
> ONGC has sent a formal request to the state to help it in maintaining
> normal operations, safety of personnel, installations and machinery.
>
> ONGC pays over Rs 200 crore every year as royalty to the Assam
> government. The figure for 2003-04 was Rs 211.74 crore. Any decline in
> the output will also lead to a reduction in royalty.
>
> ONGC has also drawn up a Rs 2,000-crore plan to revive and rejuvenate
> its oilfields in Assam over a four-year period, beginning this year.
> With the kind of nasty turn that the current bandh has taken, the
> company could be forced to scale down such plans.
>
> ONGC is the biggest employer in the state and senior company officials
> are of the view that AASU activists do not have any case for resorting
> to such strong-arm tactics. In fact, ONGC is reported to be
> overstaffed in Assam and is under pressure to induct more people for
> whom there is no work.
>
> The oil major spends over Rs 1.50 crore every year on various social
> responsibility initiatives, which is the highest by any company in
> Assam.
>
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