Assam aspires to have own oil,gas company

Guwahati, June 3: The Assam government is planning to float a joint venture hydrocarbon development and exploration company to explore and tap crude oil and gas resources in the state.

State Industry and Commerce minister Pradyut Bardoloi today said the state government was on the look out for a partner with proven experience in the field of exploration and production of crude oil and gas to set up a joint venture company.

The objective is to have a state-owned hydro-carbon development and exploration company in the lines of Gujarat model.It is to augment income from hydrocarbon resources in addition to the present royalty received from the OIL and the ONGC for the crude oil and gas produced in the state.

'' I was told by some experts that some of those 2000 odd capped oil wells belonging to the ONGC and OIL in the state could be revitalised. The public sector oil companies have decided to cap those after finding them economically unviable though oil was still there in those wells."

The public sector oil companies in the country had targetted to produce 11 MMSCND gas per annum by 2001 and 9 MMT crude oil per year by 2005 in the state. However, as on date the gas production in Assam stands at 5.7 MMSCND per year while the crude oil production is stuck at over 5 MMT per year as against combined refining capacity of 7.5 MMT per annum of the four state refineries.

UNI