CAG pulls up ONGC for burning high pressure gas worth ₹816 cr from Mumbai High Field

The Comptroller and Auditor General of India (CAG) also said that another public sector firm Indian Oil Corporation Limited collected 262.60 crore of turnover tax from consumers in Andhra Pradesh in contravention of the legal provisions of the Andhra Pradesh General Sales Tax Act, 1957. Later, it settled the legal matter with the Telangana government. 65.65 crore against the total fine imposed 262.60 crores.

Thus, as a result of “unfair promotion” to Indian Oil Corporation Ltd. 196.95 crore, the CAG said in a report tabled in Parliament.

With regard to ONGC, the CAG said that in the offshore process system of the Mumbai High Offshore fields, oil, water and gas is separated in the process of separating oil, water and gas into the developed high pressure gas process gas compressor and fed to wells for gas lift purpose.

In this process, the remaining gas is delivered to Oil and Natural Gas Corporation’s gas processing plant at Uran for further processing and sale to consumers. Any disruption in compression results in the flow of valuable high pressure gas which also has an adverse effect on the environment.

The government auditor said that in order to maximize gas production, it is essential that all equipment is maintained and operated effectively so that there is no loss in production. The burning of the gas also has an adverse effect on the environment as the emission of carbon dioxide leads to greenhouse gases and global warming.

“During 2012-13 to 2019-20, a total of 1,227.343 mmscm (Million Metric Standard Cubic Meter) high pressure gas was rated. 1,021.08 crores flared.

“The price of high pressure gas was increased due to avoidable reasons such as power shutdown, non-availability of standby process gas compressor, and tripping of process gas compressor 816.08 crore,” the CAG said.

Mumbai High Asset has 29 process gas compressors; Of whom 22 were in the age group of 15 to 36 years. During 2014-15 to 2019-20, there were 286 cases of tripping due to gas generator related issues.

The top auditor has asked ONGC to focus on preventive maintenance and follow the overhauling schedule prescribed by the original equipment manufacturer to reduce the glut of high pressure gas in the Mumbai high areas.

“ONGC may also fix responsibility on the officials responsible for such lapses, which may have been avoided by high pressure gas fires,” it added.

The report contains 42 individual comments relating to 32 Central Public Sector Enterprises (CPSEs) under 10 Ministries/Departments. Individual audit observations have total financial implications 4,779.99 crores.