United News of Bangladesh

State-owned Sylhet Gas Fields Limited (SGFL) has taken an initiative to drill three new gas and oil wells as part of efforts to ease the country's gas shortage and reduce dependence on costly imports of liquefied natural gas (LNG). The wells – Rashidpur-13, Dupitila-1 and Kailashtila-9 – are expected to add 3 crore cubic feet of gas per day to the national grid once drilling is completed, officials said. At present, SGFL supplies around 14.20 crore cubic feet of gas daily to the national grid from its 17 functioning wells. SGFL Managing Director Engr Md Faruque Hossain said, “SGFL is currently supplying 14.2 crore cubic feet of gas to the national grid every day. Once drilling of the three wells is completed, an additional 3 crore cubic feet of gas can be added to the grid," he said. Energy experts stressed the need to intensify domestic gas and oil exploration instead of relying heavily on LNG imports, which require substantial foreign currency expenditure each year. They said Bangladesh has significant untapped hydrocarbon potential both onshore and offshore and called for expanding exploration activities through faster coordination with local and international companies. Prof Dr Muhammad Farhad Howladar of the Department of Petroleum and Mining Engineering at Shahjalal University of Science and Technology said accelerating exploration activities is essential to ensuring the country's long-term energy security. Established under Petrobangla, SGFL discovered Bangladesh's first natural gas field in 1955. Apart from natural gas, the company's production currently meets around 30-35 percent of the country's petrol demand, 12-15 percent of octane demand, about 9 percent of diesel demand and nearly 2 percent of kerosene demand.

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.

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.