China's state corporation Sinopec gets the go-ahead to drill five new hydrocarbon wells on the gas-rich Bhola island as Bangladesh moves to enhance output of the fuel to feed the energy-hungry economy.
State-run Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) issued Wednesday notification of award (NOA) to the Chinese oil- and gas-exploration-company, codenamed Sinopec, sources have said.
Final deal-making is expected within next 40 days, a senior BAPEX official told The Financial Express Thursday. Sources say BAPEX, a subsidiary of Petrobangla, has selected Sinopec through competitive bidding.
After inking the final deal, the Chinese company will have to complete the five-well-drilling programme within 600 days at a cost around Tk 9.07 billion, the official says.
The project includes four development wells -- Shahbazpur-5, Shahbazpur-7, Bhola North-3, and Bhola North-4 -- and one exploratory well, Shahbazpur North-East-1.
These dugouts will be drilled to depths of 3,500-3,600 metres to tap in the caches of hydrocarbons, according to project documents.
Upon completion, the number of gas wells drilled in Bhola will rise to 14. So far, nine wells have been drilled -- seven by Russia's Gazprom and two by BAPEX.
Meanwhile, Petrobangla plans to step up hydrocarbon exploration on the offshore Bay of Bengal island, with another 14 wells to be offered to potential contractors in years ahead.
A joint study by Gazprom and BAPEX last year estimated Bhola could hold up to 5.0 trillion cubic feet (Tcf) of gas reserves if further exploration is carried out.
A 600sqkm 3D seismic survey from Shahbazpur to Elisha indicated about 2.4 Tcf of reserves, while a 152km 2D seismic survey at Char Fasson suggested an additional 2.69 Tcf.
Gazprom, which has been active in Bangladesh since 2012, has drilled about 20 wells in various gas fields, including several in Bhola.
Currently, Shahbazpur gas field, operated by BAPEX, produces about 73 million cubic feet per day (mmcfd) of gas from four wells.
Despite Bhola's total production potential of around 200mmcfd, output remains capped at roughly 70mmcfd for limited local demand and the absence of a transmission pipeline connecting the national grid.
As a result, nearly 130mmcfd gas from Bhola's Shahbazpur, Bhola North, and Ilisha fields remains stranded.
This untapped gas could significantly ease the country's reliance on expensive imported liquefied natural gas (LNG), which currently supplements domestic production.
As of January 8, 2026, Bangladesh's overall gas supply stood at around 2,578mmcfd, including 832 mmcfd of regasified LNG, against a demand exceeding 4,000mmcfd, according to Petrobangla data.
Azizjst@yahoo.com
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