ONGC Faces AP Pollution Board Stop-Production Order After Mori-5 Well Blowout

Oil & Natural Gas Corp. Ltd. ( (IN:ONGC) ) has issued an update.

Oil & Natural Gas Corporation Ltd. has disclosed that the Andhra Pradesh Pollution Control Board issued a stop production order for its Mori-5 well after a January 5 blowout and fire at the site, which is operated under a production enhancement contract by Deep Exploration Services Pvt. Ltd. The regulator alleges environmental violations, including operating without required consents and causing air pollution and potential environmental damage, though ONGC says the well has been shut since it was capped on January 10 and the financial impact is not considered significant, with the company now reviewing the order and preparing its response.

The incident underscores regulatory scrutiny of environmental compliance in India’s upstream oil and gas sector, particularly where legacy ONGC assets are being redeveloped by private contractors under production enhancement arrangements. While ONGC has indicated that the Mori-5 stoppage is immaterial to its overall operations, the order highlights potential operational and reputational risks tied to safety, permitting and environmental performance at joint or contracted fields.

More about Oil & Natural Gas Corp. Ltd.

Oil & Natural Gas Corporation Ltd. is a state-owned Indian energy company engaged in the exploration and production of oil and natural gas. The company operates extensive upstream assets across India, focusing on maintaining output from mature fields while pursuing production enhancement through contracts with specialized private operators.

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