The Comptroller and Auditor General of India (CAG) has rapped India’s largest oil and gas producer ONGC for poor planning in hiring and use of drilling rigs that resulted in a loss of Rs 7,995 crore. <\/p>\n
In a report tabled in Parliament today, CAG said the state-owned firm lacked uniformity in preparation of annual rig requirement plan (RRP), delayed rig acquisitions and hiring, was inconsistent in deployment and had inefficient repair and refurbishment policy. <\/p>\n
ONGC’s non-productive time or idling time of rigs ranged between 19 and 23 per cent over 2010-14. “The bulk of idling time costing Rs 6,418 crore was due to factors which could have been controlled by the company,” CAG said. <\/p>\n
The company also did not adhere to safety procedures and continued to do drilling\/testing operations even after one anchor of its rig Sagar Vijay had snapped. <\/p>\n
As a result, another anchor of the rig snapped which caused drifting of the rig from its location. Consequently, the well had to be closed and abandoned. As a result, expenditure of Rs 1,577.27 crore incurred by ONGC on drilling of the original location and drilling of a relief well by using another rig proved avoidable. <\/p>\n
“The insurer did not honour the claim of ONGC on the ground that the latter had not followed recognised safe operating practice,” the report said. <\/p>\n
Also, the company did not adhere to the repair schedule for dry dock management and major lay-up repairs of jack-up rigs which was against an efficient operational practice. <\/p>\n
Failure on the part of the company led to a situation wherein rigs were being operated with outdated\/obsolete equipment, CAG said. <\/p>\n
CAG said ONGC had prepared 5-year rig requirement on the basis of RRP, which included non-operational idling time of rigs that was entirely controllable by the company. <\/p>\n
Annual Rig Deployment Plans (RDPs) were prepared on the basis of RRP. “Therefore, the Annual Rig Deployment Plans had an in-built inefficiency,” it said. <\/p>\n
While there was no uniformity in preparation of annual RDPs among the Assets and Basins of ONGC, the company failed to decide a policy on acquisition of new offshore rigs for over a decade — from 2002 to 2015. <\/p>\n
Meanwhile, four out of six owned offshore rigs outlived their economic usable life of thirty years. <\/p>\n
CAG asked ONGC to ensure that the plans (five year plan, annual plan, rig requirement plan, rig deployment plan) are complete and consistent with each other and are complied with. <\/p>\n
The situation where one out of every three wells drilled is un-planned needs to be corrected, it said, adding that the controllable non-productive time of past periods should not be loaded to future rig requirement plans and efforts to be taken to reduce such non-productive time. <\/p>\n","protected":false},"excerpt":{"rendered":"
The Comptroller and Auditor General of India (CAG) has rapped India’s largest oil and gas producer ONGC for poor planning in hiring and use of drilling rigs that resulted in a loss of Rs 7,995 crore. In a report tabled in Parliament today, CAG said the state-owned firm lacked uniformity in preparation of annual rig requirement plan (RRP), delayed rig acquisitions and hiring, was inconsistent in deployment and had inefficient repair and refurbishment policy. ONGC’s non-productive time or idling time of rigs ranged between 19 and 23 per cent over 2010-14. “The bulk of idling time costing Rs 6,418 crore […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-45629","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/45629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=45629"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/45629\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=45629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=45629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=45629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}