The government’s initiative to invite an open tender for the drilling of 26 wells across various onshore gas fields, aimed at boosting domestic gas production, is likely to face a delay of another month, according to official sources. The delay is primarily due to the ongoing preparation of tender documents, the sources indicated. Three gas exploration and production companies under the state-owned Bangladesh Minerals, Oil, and Gas Corporation, commonly known as Petrobangla – Sylhet Gas Fields Limited (SGFL), Bangladesh Gas Fields Company Limited (BGFCL), and Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) – were expected to float the tender by the second week of October. However, the companies were unable to do so as the documents were not finalised for publication in newspapers and on relevant government websites. Earlier, at a press briefing on October 3 at the Energy and Mineral Resources Division, Petrobangla chairman Zanendra Nath Sarker announced that he had sent a proposal to the ministry for approval and expected that the tender would be invited within a week of receiving the green light. Power and Energy Adviser Muhammad Fouzul Kabir Khan, speaking at the same briefing, assured that the government would soon float an open tender to drill 26 wells in different gas fields to increase domestic gas production. He said that the government would refrain from awarding contracts on a G-to-G basis or signing unsolicited agreements with foreign companies. “This initiative aims to reduce our reliance on imported LNG, which is costly and drains foreign currency,” said the adviser. Read: Petrobangla now plans to invite int’l bidding for onshore blocks for hydrocarbon exploration: Chairman Regarding the delay, Fouzul Kabir told UNB that his ministry is seeking assistance from a procurement expert in preparing the tender documents, which has contributed to the time taken. Petrobangla chairman Zanendra Nath Sarker explained that, historically, documents for similar contracts were prepared under the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010. "But this time, we must adhere to the Public Procurement Rules (PPR) 2008 to invite an open tender, which is causing the delay." He expressed optimism that SGFL could issue the tender within a week, while BGFCL and BAPEX may require the full month to be ready. At the October 3 briefing, the Energy Adviser also highlighted a government plan to drill 100 wells between 2025 and 2028. Of these, 69 will be exploration and development wells, while the remaining 31 will be work-over wells. BAPEX will drill 43 of the 69 exploration wells, while the remaining 26 wells will be outsourced to contractors via open tender. Read more: Sinopec, Halliburton launch spud drilling in onshore block-SS-04 BAPEX will use its own rigs to drill 33 wells across various gas fields, with another 10 wells set to be drilled using rented rigs. “We aim to fully utilise BAPEX’s capabilities,” the adviser told reporters.

State-owned oil, gas and minerals corporation Petrobangla seeks to complete the drilling of a total of 48 wells at different gas fields hoping to add 618 MMCFD to national grid by 2025. This will be done through Petrobangla's own companies and outsourcing of contractors by next year. "We're very serious about implementing the plan on time and if necessary, we will seek a waiver from the provision of a mandatory feasibility study to avoid a time consuming process", said a top official of the Petrobangla. The official preferred anonymity as he is not authorised to talk to media. The plan is to add a total of 618 million cubic feet per day (MMCFD) gas to the national grid when power, industries as well as many other sectors are reeling from gas shortage. Read more: Action against officials of Petrobangla companies if fail to achieve target: Nasrul According to an official document, obtained by UNB, of the planned 48 wells, 23 will be drilled using the rigs of the Bapex (Bangladesh Petroleum Exploration and Production Company Limited) while the remaining 25 will be done by the outsourcing of the contractors at the existing onshore gas fields under a crash programme. "These wells will be drilled as part of the government's ongoing plan to increase the gas production from the local gas fields ", another top official of the Petrobangla told UNB, also wishing anonymity. He, however, declined to comment officially as some of the wells' approval process still remains pending with the government's highest authority. Sources said Petrobangla took up the programme against the backdrop of the declining gas production with depleting reserve positions. The country's 20 gas fields, out of total 29, produce between 1,600 and 1,900 MMCFD gas while another 1000 MMCFD gas is being imported to meet the demand for about 4000 MMCFD. Read more: Petrobangla invites offshore bidding for oil, gas exploration Officials said the local fields are depleting fast and gas reserves are declining. Currently there is 9 trillion cubic feet (TCF) of gas in the country's reserve, out of a total of 30 TCF while 21 TCF has already been produced. The gas demand is growing fast as many of the gas-fired power plants and new industries are being set up across the country. As per a scenario -2 of a projection of the Petrobangla, the country's gas demand will go up to 5,092 MMCFD in 2029-30, 6072 MMCFD in 2034-35 and 6,986 in 2040-41. Actually, the plan for drilling 48 wells is a part of the ongoing plan under which drilling of a number of wells has already been completed, said another official of Petrobangla. Read more: Petrobangla now plans to invite int’l bidding for onshore blocks for hydrocarbon exploration: Chairman These wells include Bhola North-2, Togbi-1, Elisha-1, Srikail North-1, Shariatpur-1, Titas-24, Beanibazar-1, Koilash Tila-2, Sylhet-10, Rashidpur-2, and Sundalpur-3. These newly drilled wells have now been contributing 126 MMCFD gas to the national grid, noted the official.

Bangladesh's State Minister for Power, Energy, and Minerals Resources Nasrul Hamid hoped that 1.6 TCF (trillion cubic feet) more gas will be found at the Kailashtila gas field in Golapganj upazila of Sylhet. It will be confirmed once the drilling is completed within the next four months, he said. The state minister made the remarks after visiting the Kailashtila well No 8 on Saturday (February 17, 2024). Nasrul said the Kailashtila field previously had 3 TCF reserves and more gas reserve will be found once the current search wells are drilled. Read: Massive fire set off by gas explosion in Kenya's capital kills at least 3 people, injures over 270  “We are waiting for you to take initiative. The ministry does not undertake any project. We want everyone to show their capability. Sylhet gas field has moved forward, taking on more projects. We want others to come forward as well, ” he told officials. Mizanur Rahman, managing director of Sylhet Gas Fields Limited, said seven wells were drilled in Kailashtila earlier, and gas was found in every well. “It is expected to find more than 1 TCF of gas after digging at 3500 meters of the well,” he said.  The drilling of the Kailashtila-8 well started on January 11 this year. The work is expected to be completed in 120 days. State-owned Bangladesh Petroleum Exploration and Production Company (BAPEX) is digging the well. Read: Gas crisis puts 3 major fertilizer factories out of production for nine days in Ctg  Besides, there is an existing transmission  only one and a half kilometers away and a usable process plant at a distance of two and a half kilometers. Although gas is surplus in many areas, including Bhola, and Zakiganj, it cannot be used as there is no transmission.

More reserves of gas have been found in Bangladesh's Bhola North-2 gas field. The Bangladesh Ministry of Power, Energy, and Mineral Resources in a press release said that new gas was found from an appraisal well. It mentioned that the drilling works started at the Bhola North -2 Gas Filed on December 5 last year and ended on January 17 this year after reaching 3,428 metre depth to the underground ground. “Today (Monday, January 23, 2023) the discovery was made after completion of the Drill-Stem Testing (DST).” Read More: Bill placed in JS to pave a way for govt to adjust gas, electricity without public hearing The DST in exploration wells is the last step of oil and gas exploration. “The actual amount of gas production will be determined after completion of the final production testing. But Bapex is hopeful that the field would produce 20 MMCF per day,” said the release. 

Bapex, the state-owned gas and oil exploration entity, has found fresh gas reserve in an abandoned well of Beanibazar under Sylhet Gas Field. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) officials expect that they will get 10 MMCFD (million cubic feet per day) daily from the well. State Minister for Power, Energy and Mineral Resources Nasrul Hamid made the announcement on Thursday in a post from his verified Facebook page. Read more: IMF team attends BERC presentation on setting power, gas tariffs “Along with that 100 barrels of condensate will be produced from the well daily. Hopefully within a short time we will be able to add the newfound gas and condensate to the national grid,” he said. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) started drilling the well on September 10 and confirmed of finding of the gas reserve on Thursday morning. Nasrul Hamid said by 2025, they will dig 46 new exploration, development and workover wells. “We are hopeful of adding around 620 MMCFD gas to the national grid from these wells,” he said. According to Sylhet Gas Fields Limited (SGFL), there are two wells in Beanibazar under Sylhet Gas Field. Production from well no 1 started in 1999 and was closed in 2014. Production resumed in well no 1 at the beginning of 2016 and was stopped again at the end of the same year. From then the well remained abandoned. Engineer Shahinur Islam, Managing Director of SGFL, said, "We will soon be able to start production from this well after completing some other activities. Before the start of drilling, it was estimated in the Development Project Performa (DPP) that 5 MMCFD gas will be found in the well but now it seems the amount of available gas will be more.” Read more: New gas found in Bhola field amid crisis Apart from Beanibazar well, digging of Kailashtila-8 and Goainghat-10 wells in Golapganj and installation work of 1 transmission pipeline in Rashidpur is going on under Sylhet Gas Fields Limited (SGFL),he said. SGFL's gas production will further increase after completion of these projects, he said.

Chinese Sinopec and the US-based Halliburton are set to start spud drilling Kanchan-1 Well under the country’s shallow water Block-SS-04 on Wednesday. According to sources at the energy industry, Sinopec International Petroleum Service Corporation will conduct drilling as the drilling contractor for the project with Halliburton International Gmbh as their subcontractor for integrated services. Read: Electricity for all: Hasina inaugurates five power plants The Chinese and the US company will conduct the drilling as the contractor of India’s state-owned ONGC Videsh Limited (OVL). The OVL was awarded the block SS-04 by Bangladesh's state-owned Perobangla through production sharing contract in 2014 under a bidding round in 2012. Earlier, the OVL floated the tender invitation for the provision of drilling of Kanchan-1 onshore well in September 2017 and awarded the contract to the Sinopec. Read: Hydropower projects in Nepal: Bangladesh’s investment decision after survey The block is located in Bengal Basin and covers an area of 7269 Sq. Km with water depth ranging from 0 to 100 meter. The block was awarded to a consortium of ONGC Videsh Ltd and Oil India Ltd in 2012 Bangladesh bid round and the PSC was signed on in February 2014. ONGC Videsh with 45% PI is the operator and other partners are OIL with 45% PI and Bangladesh’s state-owned BAPEX with 10% PI.

A formula-based pricing policy needs to be put in place to attract international oil companies (IOCs) to explore hydrocarbon in Bangladesh, energy experts said on Saturday. "Unless there is a formula to fix energy prices, the IOCs will not be interested to come here," said Khondokar Abdus Saleque, a former senior official of Petrobangla. Read Experts upset at govt's growing dependence on gas import Saleque, who was speaking at the seminar "Post-Covid Hydrocarbon Exploration Challenges for Bangladesh," said presently Bangladesh is following a fixed price policy for energy prices; the country is offering $6-plus per unit of gas to the IOCs while it is importing it at over $11. "In such a situation, the IOCs will not be interested to invest here. Rather, they will be up for it if there is a certain formula for setting the price in line with the global market price," he added. Read BAPEX discovers 4-layer gas in new part of Haripur Speaking at the webinar organised by Energy and Power magazine, former Petrobangla chairman Muktadir Ali said Bangladesh failed to make any breakthrough in onshore and offshore hydrocarbon exploration, only because of the gas price offered to IOCs.  "The country will face the real challenge from 2024-25 when its gas production will begin to slow down and fall below 2,000 MMCFD," he said. "Also, we should not depend too much on liquefied natural gas (LNG) import for meeting our energy demand." Read Cabinet purchase body nods LNG import Dhaka University geology department Professor Dr Badrul Imam said the government is now engaging foreign companies in the potential gas fields which were discovered by Bapex.  Petroleum geologist M Faridduddin said, "Petrobangla and Bapex could not take the right decision as they need to get approval from the concerned ministry and higher authority to explore hydrocarbons." Read Two recently-relinquished offshore gas blocks remain unexploited Former Bapex managing director Mortuza Ahmad Faruque said the Probangla executive board is now dominated by officials from the concerned ministry who do not have the technical know-how.

Energy experts at a webinar in Dhaka expressed frustration over the government’s unwillingness on hydrocarbon exploration in the country and growing dependence on gas import to meet the domestic demand. 

Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) have started extracting gas from a new part of the Haripur gas field located in Jaintapur upazila in Sylhet.

Defending the decision to award contracts to foreign companies for gas exploration and production in Bangladesh, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said on Saturday that the state-owned Bapex’s failure to do its job properly prompted the government to take such a step.