Oil India: Blowout fire continues, financial impact remains unclear
Oil & gas exploration public sector company, Oil India Limited is still battling against the gas well blow out since May 27, 2020. The Baghjan Oilfield in Tinsukia of Assam caught fire on June 09, 2020, twelve days after the blow out. The situation deteriorated after the first instance of loss of life was reported on June 10.
The situation has been escalating every day since the blow out. According to reports, burning of gas at the well mouth might continue till the well is capped. The company has taken a decision to make available an amount of Rs 30,000 to each of the affected families as an immediate relief.
The whole incident including the fire is bound to impact the financials of the company. The current lockdown scenario has already affected the normal demand-supply ratios. Moreover, the impact on its capex plans is likely to spill into the next fiscal from the current year. The company had planned Rs 3,000 to Rs 4,000 crore capex in FY20 and FY21. The expenditure was expected in areas of drilling, exploration and survey. It also included the construction of a 40 kilometre gas pipeline from 'Baghjan to Central Gas Gathering Station' and field gas gathering station (FGGS) at Baghjan.
On Friday, the company's stock closed with losses of 2.8 per cent at Rs 91.30 on BSE.