Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
12,086.70114.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

ONGC suffers Rs 2 cr loss per day on oil blockade

The 96-hour oil blockade clamped on ONGC has resulted in losses of Rs 2 crore per day. When the blockade ends, the company’s losses will cross Rs 10 crore. Besides, there has been permanent damage to the oil wells.

, ET Bureau|
Dec 24, 2009, 09.21 PM IST
0Comments
GUWAHATI: The 96-hour oil blockade clamped on ONGC has resulted in losses of Rs 2 crore per day. When the blockade ends on Friday, the company’s losses will cross Rs 10 crore. Besides, there has been permanent damage to the oil wells.

The bandh has been called by Aasu to protest the move to form a new subsidiary which will include the Assam assets of ONGC. These assets account for 15% of domestic petroleum and 10% of the total gas produced in India.

ONGC has said no such decision has been taken either by the company management or by the petroleum ministry. Sources in the company added: "While no exploratory work could be carried out, new discoveries will also get affected owing to the blockade. Idling of hired rigs and manpower are other costs which will compound losses for Assam assets."

Aasu has made it clear that it will continue with the agitation till the ONGC management declares that the Assam assets will remain part of the navaratna company.

Assam assets contribute around Rs 304.5 crore as royalty and Rs 80.5 crore as sales tax per annum to the state government.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service