Privatisation of Oil, Gas Production Making Wells in KG Basin Vulnerable

Vijayawada: Oil and gas exploration and production in Krishna-Godavari basin, which encompasses the erstwhile districts of Godavari and Krishna, is increasingly becoming a cause of concern among villagers, with instances of blowouts and fire increasing.

Public sector oil and gas major Oil and Natural Gas Corporation (ONGC) has an operational area of over 4,335 square kilometres in 37 blocks of the KG basin. ONGC has so far made a total of 90 onshore and offshore discoveries in 74 fields after having first struck oil and gas at Razole in 1983. As of April 2025, ONGC has produced a total of 46 million metric tonnes of oil equivalent after starting its first commercial production at Kaikaluru in 1987.

Another public sector unit, Gas Authority of India Limited (GAIL) markets the produced gas and oil supplied through a network of pipelines in the area.

With passage of time, the number of ONGC’s exploratory, productive and defunct wells has increased. The pipelines of GAIL have also aged, though several of them have been replaced. Presence of the many vulnerable wells and pipelines has been leading to leakages and blowouts, with major ones among them causing numerous deaths.

The latest mishap occurred at a defunct well named Mori-5 in Konaseema district, which a production enhancement contractor (PEC) called Deep Industries Limited had been exploring as part of its contractual efforts to increase the production of oil and gas from the well.

ONGC sources say there are several such wells where PEC operators are engaged. There is always a possibility of mishap, unless there is proper monitoring. As the operators are private, they try to cut corners. This is leading to mishaps and fires at regular intervals.

Local villagers have expressed their concerns, saying there is a constant threat to their lives, as exploration and production enhancements are continuously going on in villages like Razole, Sakhinetipalli, Mamidikuduru, Uppalaguptam, Alllavaram and others, mainly in the Konaseema district.

Villagers say the blowouts and fire damage their crops, while polluting drinking water and irrigation sources. They are facing environmental issues, exposure to radiation, and damage to roads due to movement of heavy vehicles. Their health is suffering, with issues like burning eyes, gastric issues and so on.

Villager Karem Venkateswara Rao said, “Oil and gas have brought no benefit to us. Local youth are not being provided with jobs, claiming they are highly technical. CSR funds benefit only areas in which local public representatives have an interest. We have learnt that several wells, despite having good deposits of oil and gas, have been entrusted to PEC operators only to benefit private people. Some of the contractors do not even have the overall technical know-how to take up exploration of oil and gas, resulting in blowouts and fire, including the latest one.”

When contacted, ONGC Rajahmundry Asset executive director Santanu Das told Deccan Chronicle, “We are expecting that the low intensity fire at Mori-5 Well will subside in the next few days. We are allowing the gas deposits in the well to burn out to avoid any trouble in future. We follow the best practices in the world for taking up exploration of oil and gas. Our personnel are well trained and we have the best equipment,” he stated.

With regard to PEC operators taking up production enhancement, Santanu Das pointed out that they come through competitive bidding at the national level. “We accord top priority to safety of our personnel, equipment and people before taking up production,” he maintained.