Photo : Messenger
In an effort to alleviate the primary energy crisis, the government has decided to explore domestic resources, selecting companies from both the United States and Russia, which have been operating successfully in the country for years.
Simultaneously, the government has taken a preliminary decision to award Block-8 and Block-11 to the US-based gas exploration company Chevron and the Russian state-owned Gazprom for drilling operations in Shahabazpur-5, 7, and Bhola Island.
Industry insiders believe these projects may help mitigate the primary fuel crisis, especially as fuel prices rise in the global market due to inflation. However, it is suggested that the contracts should be awarded through an open bidding procedure rather than a Special Act to ensure transparency and competitiveness.
State Minister for Power, Energy, and Mineral Resources Nasrul Hamid told The Daily Messenger, "The agreement's final formula is yet to be determined. Chevron has been asked to submit a foolproof proposal for the project, which will be finalised later."
In response to another question, the junior minister said, "Chevron has proposed signing the contract under the Special Act for oil and gas exploration in the sea. We have advised them not to make any decisions before receiving the multiclient survey report. Obtaining the multiclient survey report will take one to two months, and many large foreign companies are expressing interest in offshore oil and gas exploration due to the attractiveness of the model PSC. The US company Exxon Mobil is particularly interested and has already submitted two proposals."
Although the matter was discussed in the middle of last year, Eric M. Walker, President and Managing Director of Chevron Bangladesh, submitted a written application in December. The company submitted the proposal for Block-8 in Tangail and Jamalpur districts and Block-11 in Sunamganj, Sherpur, and Mymensingh under the Special Provisions Act.
Zanendra Nath Sarker, the chairman of the state-owned gas oil exploration company Petrobangla, told The Daily Messenger, "The project is awaiting approval from the Prime Minister's Office (PMO). Once we receive the green signal, we will finalize the deal with Gazprom."
Two onshore gas wells are located in Shahbazpur, and Bhola North gas fields, while another is situated in Shahbazpur North East gas field, according to officials.
The onshore gas wells to be awarded to Gazprom are SBZ-5 and 7 in Shahbazpur gas field, Bhola North-3 and 4, and Shahbazpur North East-1.
Gazprom is now preparing technical and financial proposals to submit to the state-run Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) for the contract.
The Russian-state firm has been working as a contractor company in Bangladesh for over a decade, since 2012.
As of 2023, Gazprom has completed the drilling of a total of 17 gas wells, primarily development wells, in various gas fields.
The Russian firm most recently completed drilling three gas wells: Tabgi-1, Bhola North-2, and Illisha-1.
Currently, Bhola North and Shahbazpur North East gas fields together hold gas reserves of over 1.5 trillion cubic feet, according to officials.
According to Petrobangla statistics, Bangladesh's overall natural gas demand is currently around 4,000 mmcfd. Overall production is approximately 2,819 mmcfd, including about 719 mmcfd of re-gasified liquefied natural gas (LNG), as of September 22.
BAPEX, a state-owned gas exploration company, has conducted a two-dimensional survey in Block-8 and a three-dimensional survey in a part of Block-11. Prospective Block-11 is estimated to have 2.47 trillion cubic feet of gas reserves.
Chevron Bangladesh will conduct two-dimensional and three-dimensional surveys in these blocks. If the survey results are positive, the company will proceed to the next step: well drilling.
Multinational company Chevron Bangladesh is extracting gas from a total of three blocks: Bibiana gas field in block-12, Jalalabad gas field in block-13, and Moulvibazar gas field in block-14. Bibiana is one of the largest gas fields in the country.
According to Petrobangla, 1080.1 million cubic feet of gas was extracted from the gas field on September 24. On that day, Chevron Bangladesh extracted a total of 1280.69 million cubic feet of gas from three gas fields. This accounts for 44.3 percent of the total gas production in Bangladesh.
Furthermore, in October of last year, the Energy and Mineral Resources Division, Petrobangla, and Chevron Bangladesh signed a tripartite supplementary agreement to drill wells in the new area of Chevron's Bibiana field. Under this agreement, drilling for the 27th well in the new area of Chevron's Bibiana field has commenced. If this well proves successful, the company intends to dig additional wells.
Messenger/Jannatul/Disha
