GUWAHATI: Public sector company, Oil India Limited (OIL) has sought Assam government’s assistance to deal with frequent bandhs and local disruptions which are affecting its operations.

Meanwhile, OIL has announced Rs 50 crore start-up fund to foster, nurture and incubate new ideas related to oil and gas sector. The public sector is partnering with IIT Guwahati which will provide idea incubation in this regard.

Utpal Bora, chairman and managing director of OIL, on Sunday said disruption and bandhs in operational area causes long term damage to reservoir and disturbs the flow of oil and gas from the well.

“We have taken up the matter with chief minister, Sarbananda Sonowal and he has assured us security and assistance,” the CMD said.

Improving the law and order scenario in insurgency Assam was one of the promises made by the BJP in the assembly polls in April this year.

According to OIL, an organisation comes up with as many as 60 demands and these are mostly related to construction of roads, library and others.

Bora said OIL is faced with falling production of the crude oil , oil production came down from 3.8 million metric tonnes per annum (MMTPA) in 2010-11 to 3.24 MMT in the last financial year.

“OIL is faced with the problem of matured and ageing oilfields. At least 30 percent of the wells in the 1500 flowing oilfields are non-flowing,” he revealed.

OIL has sought additional security and patrolling by the state police force in the operational areas for miscreants causes damage to oil property.

Bora said, “Miscreants causing damage and theft of oil properties has become an area of concern for us. With our security personnel is not possible to guard all the oil producing areas for it is spread in huge area. ”

A senior official added, “In some cases it is seen that holes are done in the product line and oil is pilferage from it. Faced with regular wear and tear in oilfield area, the oil and gas flow lines are replaced. Taking advantage of this, miscreants take away the pipes. They even cut the pipes with blades and sale it. Such organised are the miscreants that they even manage to carry the pipes in trucks. In other instances it is seen that anti social elements steal the valve of the pipeline and the Christmas tree erected to control the flow of the oil in the well. These snags again result in production losses.”

In last two years the company has suffered losses to the tune of Rs 45 crore for frequent disruptions.