Two die in Oil India's Assam gas well fire

Two fire service officers of state-run Oil India lost their lives on Tuesday, when a gas well at Baghjan in Tinsukia district of Assam caught fire.

The blowout well caught fire around 1:14 PM on 9 June 2020, Oil India said in a statement on 10 June 2020. Four persons (two from Oil India, one from ONGC and one from contractor) sustained minor injury and have been given immediate medical help.

Currently, Fire Tenders are spraying water to contain fire from spreading in the surrounding areas. Arrangement for additional water for fire control is in progress.

Hone Minister of Petroleum & Natural Gas and Steel took complete stock of the ground level situation of the fire from the OIL team at Baghjan and advised OIL to take immediate action for providing all necessary support to the affected people in the fire. The Minister further advised OIL team to take all steps to control the spread of fire.

As an immediate actionable measure after the meeting, CMD-OIL constituted four teams, namely technical, arrangements & facilities, relief and rehabilitation and other issues for effective execution of measures in the current crisis situation. Experts' team from Alert, Singapore visited the well site this morning along with OIL & ONGC teams to assess the current situation and is currently preparing the roadmap for the next course of action.

Shares of Oil India rose 2.45% to Rs 96.30 on BSE. The stock hovered in the range of Rs 93 to Rs 98.80 so far.

The scrip jumped 9.68% in a month. On the technical front, the stock's RSI (relative strength index) stood at 65.445. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 80.90 and its 200-day moving average (DMA) placed at 113.19.

On a consolidated basis, Oil India's net profit tanked 50.1% to Rs 709.39 crore on a 16.1% decline in net sales to Rs 2,957.19 crore in Q3 December 2019 over Q3 December 2018.

Oil India is a state-owned Navratna under the administrative control of India's Ministry of Petroleum and Natural Gas. As of 31 March 2020, the Government of India held 56.66% stake in the company.

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