United News of Bangladesh

In a bid to reduce reliance on imported liquefied natural gas (LNG), Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) is expediting the tender process for drilling 21 wells across various gas fields. According to official sources, 21 out of the proposed 26 wells are either at the awarding stage or undergoing tendering. Summit Group urges Petrobangla to reconsider termination notice for 3rd LNG Terminal The remaining five will soon be tendered for drilling, they said. The initiative follows an energy ministry plan announced on 3 October last year by Power and Energy Adviser Dr Muhammad Fouzul Kabir Khan. He had declared that open tenders would be invited for the drilling of 26 wells to enhance domestic gas production and lessen dependency on expensive LNG imports. Dr Khan said that no contracts would be awarded on a government-to-government (G-to-G) or unsolicited basis. He said revealed that a total of 100 wells are set to be drilled between 2025 and 2028, comprising 69 for exploration and development and 31 for workover operations. Of these, the Bangladesh Petroleum Exploration and Production Company Limited (Bapex) will drill 43 wells—33 using its own rigs and 10 with rented rigs—while the remaining 26 will be handled by contractors through open tendering. Under Petrobangla’s directive, three subsidiaries—Bapex, Bangladesh Gas Fields Company Limited (BGFCL), and Sylhet Gas Fields Limited (SGFL)—are overseeing the drilling activities. BGFCL has already issued Notifications of Award (NoA) for six wells, namely Sylhet 10 Extension, Sylhet-4, Dupitila-1, Rashidpur-11, Rashidpur-13, and Kailashtila-9. Additionally, BGFCL has taken over five more wells for workover drilling. Meanwhile, Bapex has floated tenders for five wells in the Bhola gas fields, including Shahbazpur-5, Shahbazpur-7, Shahbazpur North East-1, Bhola North-3, and Bhola North-4. The company has also completed the tender process for three additional wells. The previous Awami League government had initially decided to award contracts to the Russian company Gazprom without tender under the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010. The interim government repealed the act and cancelled the decision to engage Gazprom. Rezanur Rahman takes charge as Petrobangla chairman Bapex Managing Director Md Shoyeb stated that the tender process is expected to conclude within the next two to three months, with drilling operations anticipated to commence by June this year. “We hope the country will gain approximately 100 million cubic feet of gas per day (mmcfd),” he told UNB.  SGFL officials noted that they have also floated tenders for several wells to further ramp up domestic gas production. Sources from all three companies indicated that around 10 additional tender offers are under evaluation, with contract awards expected soon. Energy ministry officials highlighted that Bangladesh currently imports approximately 1,000-1,100 mmcfd of gas to meet daily demand, which is projected to double by 2026. If the government’s drilling plan is successfully implemented, it could increase local gas production by at least 500 mmcfd, significantly reducing the need for LNG imports.

Russian Ambassador to Bangladesh Alexander Mantytskiy has said exploration of two more wells is expected to begin this year, noting that recently the Gazprom International Investments B.V. launched drilling of a new well in the gas fields of Bhola Island. “Hopefully, this initiative will contribute to exploring the own mineral resources of Bangladesh and consolidating the energy security of the country,” he said. The Russian Embassy hosted a roundtable on Wednesday titled “Six Months of the Special Military Operation (SMO) in Ukraine: Its Results and Perspectives and Russia-Bangladesh Relations in the Context of Economic Crisis.” The Russian envoy said a number of other initiatives regarding the supplies of Russian crude and refined oil as well as on modernization of the local power infrastructure are being discussed both at the intergovernmental and business-to-business levels. He said their economic ties are not limited by the energy sector. “With major logistical obstacles being removed, the negotiations are ongoing between Moscow and Dhaka to resume wheat purchase on a G-to-G basis through the direct procurement method.” At the initial stage, the envoy said, the possibility to deliver two-three lakh tons of Russian grain will be elaborated on. Read: Moscow seeks stronger ties with Dhaka amid anti-Russian sanctions The Russian side also stands ready to supply potash fertilizers according to the previously signed contract, as the American sanctions no longer cover non-organic fertilizers and other essential food goods. Besides, there is a growing interest in Russia to procure Bangladeshi medicine and agricultural products. On February 2 this year, JSC Glavkosmos and Bangladesh Satellite Company Limited signed the Memorandum of Cooperation in the field of promotion of products and services of the Russian space industry in the People's Republic of Bangladesh including manufacturing and launch of “Bangabandhu-2” Earth observation satellite system. Both sides are willing to proceed with the said undertaking regardless of possible temporary hardships caused by the global political and economic situation, said the envoy. He expressed sincere gratitude to the government of Bangladesh led by Prime Minister Sheikh Hasina, which remains invariably committed to continuing the implementation of joint projects despite an “unprecedented, impudent external pressure”. Now, as Russia and Bangladesh mark the 50th anniversary of their diplomatic relations, such a determined and constructive attitude once again proves the strength and solidity of the time-tested bonds of friendship between the two countries, said the ambassador. The envoy said stability of the global food, energy and financial markets could be restored only through reducing transportation and logistical tensions, ensuring unhindered supplies. “There is the only way to achieve it: the real abolition of all unilateral coercive measures imposed by the Western countries,” he said. The bilateral trade operations are being carried out successfully through the other Russian banks not affected by the Western restrictions. Moreover, the Central Bank of the Russian Federation and the Bangladesh Bank remain in close contact discussing the ways to open correspondent accounts, said the envoy. “The plots of Washington and its allies have not shattered our fruitful cooperation in the energy sector. The construction of the Rooppur NPP is being carried out without hindrances and according to the schedule,” said the envoy.