Oil found in Sylhet-10 gas well

Bangladesh has found the presence of oil deposit in Sylhet-10 onshore gas well, according to an official disclosure made Sunday.

Some 70 barrels of oil flowed in two hours in a depth between 1,397 metres and 1445 metres of the well, owned by Sylhet Gas Fields Ltd (SGFL), state minister for the Ministry of Power, Energy and Mineral Resources (MPEMR) Nasrul Hamid said at a press conference in the secretariat.

"To ensure commercial viability of oil reserves it will take several tests and reserve analysis, which will take around five to six months," said Mr Hamid.

He said apart from prospective oil reserves, natural gas presences were also found in three separate layers at 2290 metres to 2320 metres, 2,460 metres to 2,475 metres, and 2,540 metres to 2,576 metres.

Some 200 billion cubic feet (Bcf) to 300 Bcf of gas reserves valued around Tk 170 billion could be found in three layers of the Sylhet-10 well, Petrobangla Chairman Zanendra Nath Sarker said at the press conference.

Initially found oil reserves were about 8-10 million barrels worth around Tk70 billion, he said.

Oil was found in the layer 1397-1,445-metre deep, he said, adding, that the test was carried out on December 8 with an initial API gravity of 29.7 degrees.

Around 35 barrels of oil flow per hour is available at self-pressure.

"After the test is completed, the oil reserves will be known," he added.

Chinese oil-and gas-exploration company Sinopec drilled the well located in Bagher Road area of Alirgao Union of Gowainghat Upazila in Sylhet, at a total cost of around Tk 2.02 billion of which Tk 1.50 billion was sourced from Gas Development Fund (GDF).

Officials say it was not the first time that Bangladesh struck oil. Oil was first discovered in Haripur field back in 1986, and abandoned, despite having commercial viability, as the then technique in Bangladesh was applicable to producing gas, not oil.

Later in 2012, the then Petrobangla chairman, Mohammad Hussain Monsur, had announced striking commercially viable oil reserves in two gas fields in Sylhet.

It was estimated that the reserves were of around 153 million barrels but, again, no initiative was taken to extract that oil.

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