Panna-Mukta oil leak costs Rs 300 cr

In last 15 days, the companies have suffered a loss of nearly Rs 17-18 crore per day

HALTING production at Panna-Mukta oil and gas field on the Western cost due to a leak in the sub-sea hose has cost the BG-Oil and Natural Gas Corporation-Reliance Industries consortium up to Rs 18 crore per day.

The production came to a standstill beginning July 20, piling up losses for the consortium close to Rs 300 crore.

ONGC has rushed its multi-specialty vehicle (MSV) to the site, but heavy rains have delayed repairs to under-sea hose near the Panna single buoy mooring (SBM), an official close to the development said.

“In last 15 days, the companies have suffered a loss of nearly Rs 17-18 crore per day,” two Mumbai-based oil analysts told Financial Chronicle.

Production of approximately 35,000 barrels oil per day (bopd) and 205 million standard cubic feet (mscf) gas per day has been stopped, BG told Financial Chronicle on Monday.

BG Exploration and Production India, a part of UK-based BG group, has 30 per cent stake in the field, while government owned ONGC has a participating interest of 40 per cent. Mukesh Ambani-promoted Reliance Industries (RIL) has the remaining 30 per cent stake in the project.

Crude oil from the platform is sold at similar prices to that of Brent that is presently hovering around $80 per barrel.

“Considering the present Brent price, revenue loss due to halting crude output will be nearly Rs 12.5-13 crore everyday,” said Saeed Jaffery, oil analyst at Ambit Capital.

On the other hand, natural gas from the field is sold at $ 5.73 per million British thermal unit (mBtu). The revenue impact for halting natural gas output is close to Rs 6 crore per day, he indicated.

BG didn't respond to an FC e-mail seeking revenue loss impact after halting production on June 20. Calls and SMS sent to BG spokesperson remained unanswered.

Halt in production has hit several customers including Gujarat Gas Company, whose 60 per cent supply has been cut.

The company is buying spot LNG to meet its demand. Another customer of Panna-Mukta gas is Torrent Power.

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