| II. GAS EXPLORATION IN
BANGLADESH (1-5, 9, 24, 29) The exploration for oil and gas in the areas what constitute now Bangladesh was initiated for finding oil in 1908 with the first exploratory well drilled at Sitakundu. This was followed by three exploratory wells by 1914. The exploration activities since 1908 can be broadly divided into five distinct phases as listed in Table 2.1. TABLE 2.1: EXPLORATION ACTIVITIES IN BANGLADESH SINCE 1910
After the emergence of Bangladesh the exploration by International Oil Companies (IOCs) under production sharing contract was initiated. The country was divided into 23 blocks for PSC. Six IOCs were awarded 7 blocks under PSC in the early seventies. During the period 1974-77, seven offshore exploratory wells were drilled with only one gas field discovery. In 1988, under a new PSC, 4 blocks were awarded to two IOCs who drilled 4 exploratory wells leading to the discovery of one gas field. In the early nineties, the model PSC of 1988 was revised and 8 blocks have been awarded to four IOCs. Two of these IOCs have so far drilled 14 exploratory wells since 1994 resulting in the discovery of 3 gas fields including one offshore field; and there was one gas well blowout. During the period 1972-2000, Petrobangla drilled 16 exploratory wells and discovered 9 gas fields and one oil field. Table 2.2 lists the exploration activities since 1972. TABLE 2.2: EXPLORATION ACTIVITIES IN BANGLADESH SINCE 1972
In terms of gas reserves, IOCs under a wide range of PSCs have made major gas discoveries in Bangladesh. These IOCs including those operating during pre-1972 era have discovered total recoverable gas reserves of 14.19 TCF from twelve fields while Petrobangla has discovered a total recoverable gas reserve of 1.47 TCF from ten fields. Since the emergence of Bangladesh, the IOCs’ exploration has contributed 4.46 TCF to recoverable gas reserves and Petrobangla’s discoveries have contributed 1.24 TCF to recoverable gas reserves. The six plan periods consisting of five 5-year plans and one 2-year plan since 1974 envisaged over 40 exploratory wells to be drilled in the public sector; but in reality only 16 exploratory wells were drilled. Availability of funds was the main constraint in some plan periods. During the 1990s the exploratory drilling program did not gather the desired momentum in spite of the presence of IOCs. Only 13 exploratory wells were drilled which means about 1.3 wells per year. Since 1997 BAPEX, the exploration company of Petrobangla has not undertaken any exploratory drilling. Of late IOCs have also slowed their exploration drilling programs. |