Lack of Expertise Within ONGC’s Hired Contractors Causing Blowouts in AP, Assam
Recently, two incidents of blowout have been reported, including the Monday’s blowout at ONGC’s Well Mori-5 at Irusumanda village in Malikipuram mandal of Dr. B.R. Ambedkar Konaseema district
Vijayawada: Oil and Natural Gas Corporation (ONGC) is increasingly engaging private agencies on a contract basis for various specialised tasks involved in exploration and production of oil. However, the agencies hired lack technical expertise and the requisite equipment. This is causing blowouts at the oil or gas wells not only in Andhra Pradesh but also Assam, leading to colossal environmental damage and spreading fears among local people.
Recently, two incidents of blowout have been reported, including the Monday’s blowout at ONGC’s Well Mori-5 at Irusumanda village in Malikipuram mandal of Dr. B.R. Ambedkar Konaseema district.
ONGC sources say Deep Industries Limited, which has been entrusted with the task of enhancing production from Mori-5, lacks the requisite expertise in tapping and production of hydrocarbons. This is what led to Monday’s blowout and the raging fire.
Similarly, in June 2025, a blowout occurred during the workover operation at the ONGC’s operational area at Sivasagar in Assam. A private contractor SK Petro Services Private Limited had been entrusted with the task of enhancing the production from this aging well. The contractor had been performing a zone-transfer perforation, when it went out of control after pressure surged.
In both the blowouts, common factors are private firms, lack of expertise in handling a crisis and absence of equipment like blowout preventers that control gas or oil leak, thereby checking fire mishaps.
A major lacuna in outsourcing enhancement of production and other tasks is that the contractors may not know the local geology and other technical aspects to deal with emergency situations like gas or oil leak and cases of resulting fires.
Some retired officials of ONGC admit that the oil and gas major is outsourcing certain of its tasks to private parties to reduce its production costs, including in deploying adequate manpower.
Significantly, some of the firms have been hired after political recommendations.
When blowouts occur, the private firms raise their hands, expressing helplessness in dealing with the emergency situations. ONGC then has to rush its Crisis Management Team to the site of emergency. It takes up the whole operation of controlling the leaking gas or oil from the wells or pipelines as well as the raging fire, as state governments hold it responsible for safety.
In extreme circumstances, ONGC even goes on to hire international experts to deal with the situation, paying hefty amounts.
The corporation may penalise the contract agencies for their lapses and violation of terms of contract subsequently. But the fact of the matter is it incurs huge expenditure for controlling the leaking gas or oil and fire. In other words, it is paying for the lapses of the private parties.
ONGC released a statement on Tuesday stating that senior management, along with its Crisis Management Team have assumed operational control of Well Mori-5 following the blowout at Irusumanda village. It said high capacity firewater pumps and fire pumps have reached the accident site. A comprehensive blowout control plan has been finalised.
ONGC Rajahmundry Asset’s executive director and asset manager Santanu Das and a team of senior officials are camping in the area to monitor the operation to control the raging fire.
Santanu said, “The raging fire at Well Mori-5 has to some extent subsided. We are in the process of dealing successfully with the blowout. We don’t have any issues hiring private contract agencies for production enhancement. The hiring is strictly as per norms.”
