Gazprom wants to be more involved in exploring gas

FE Team | Published: September 16, 2013 00:00:00 | Updated: February 01, 2018 00:00:00

M Azizur Rahman Russian oil and gas company Gazprom is keen to be involved in the country's oil and gas sector in a bigger way by providing financial support, carrying out exploration activities and developing skilled manpower, a top government official said Sunday. "The Gazprom wants to play an active role in different areas of the country's energy sector for development," Economic Relations Division (ERD) Secretary Md Abul Kalam Azad told the FE on his return from Moscow on the day. He said as per the primary discussion, the Russian firm is interested to implement different power and energy projects. A Gazprom team is expected to visit Bangladesh in the third week of October to identify areas in energy and power sectors for the Gazprom's engagement, said Mr Azad. Power and Energy Divisions of the ministry of power, energy and mineral resources, state-owned Petrobangla and Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) would discuss in detail in this regard, he added. A high-powered government delegation, led by the ERD Secretary, visited Moscow last week seeking further assistance from Russia to develop the country's power and energy sector. The team sought both technical and funding assistance from Russia. A senior Petrobangla official said the country is eyeing funding assistance of US$2.0 billion at less than 2.0 per cent interest rate from Russia to carry out several onshore gas sector development projects to augment the overall supply to meet the mounting natural gas demand. The Petrobangla is seeking the Russian fund for drilling a total of 41 wells which include 13 development wells, 8 appraisal wells, 13 work-over wells and 7 exploratory wells in the Titas, Bakhrabad, Kamta, Bhola, Haripur, Koilashtila, Biani Bazar, Chittagong and Rashidpur gas fields, said the official. It also expected to set up 14 natural gas processing plants in these gas fields. With the funding, Bangladesh is set to install a total of 45 natural gas compression stations and generators, which include 33 wellhead gas compressors, 10 gas generators, and one each fractionation plant and gas compressors at the franchise area of state-owned Bangladesh Gas Fields Company Ltd (BGFCL). The country also aims to carry out 2,570 kilometres of 2D and 3D seismic surveys in several onshore areas and install a total of 511 km natural gas pipelines to carry gas output to the user ends. Bangladesh also expects to increase natural gas output by 1,060 million cubic feet per day (mmcfd) with the implementation of the planned projects with funding assistance from the Russian government. The delegation will also seek Russian assistance to restructure Ghorasal 210 mw power plant, he said. The Petrobangla earlier held preliminary discussions with the Gazprom over the planned project works and funding assistance from Russia. The Russian firm in June expressed interest to drill four new wells, in addition to its currently operational 10-well drilling programme. It is seeking to drill two more wells in the Shahbazpur gas field and one well each in the Haripur and Jaldi gas fields. It is also keen to build a natural gas pipeline to carry gas from stranded Shahbazpur to mainland in Khulna, the southern region of Bangladesh where currently there is no available gas, said the official. The Gazprom is currently carrying out a 10-well drilling programme at the cost of around $193.5 million in different state-run gas fields owned by three subsidiary gas companies of the Petrobangla. The Gazprom first got gas in Bangladesh on May 21 when it was testing the Srikail-3 onshore well, located in Comilla some 86-km southeast from the capital. The Gazprom received around 12 mmcfd of gas while testing. But the Srikail-3 well has the potential to supply up to 30 mmcfd. It completed second onshore Titas-20 well on May 20. Production from the well is yet to start. The Russian firm is involved in drilling onshore gas wells as a contractor. The Gazprom is the first foreign company in operation in Bangladesh on a contract basis.