Sangu gas level falling fast, business in for worse times

---

FE Report
Gas production at the country's lone offshore Sangu gas field fell by half to a meagre 11 million cubic feet per day (mmcfd) Monday resulting in acute gas crisis in the port city of Chittagong, said officials.
Sangu's current production is now at an all-time low, which is only five per cent of its peak gas output of around 220 mmcfd during 2006.
Businesses in Chittagong, already passing through bad times due to energy crisis, are set to undergo further ordeals thanks to the sharp decline in Sangu output.
Scores of industries including those of steel, re-rolling, glass sheet, garments and textiles remained inoperative for long after huge investments due only to gas crisis.
Petrobangla officials, however, said Sangu's new operator Australian Santos is now carrying out well-intervention activities at Sangu to enhance gas production.
"If the works are successfully done, Sangu's production will reach around 40 mmcfd," a senior Petrobangla official said.
We expect that the well-intervention works will be completed this week, said the official.
Sangu's previous operator Scottish Cairn Energy had predicted that the field would be dried up completely by 2011 as gas production from this field is dwindling alarmingly.
Cairn had reduced the Sangu reserve forecast by 26 billion cubic feet after drilling in winter 2006.
Sangu gas field was discovered by Cairn in 1996 with proven reserve of 0.8 trillion cubic feet (TCF).
The operation of Sangu gas field was handed over to Anglo-Dutch Shell Oil Company, along with the then Bangladesh employees, in 1998.
After production of gas for six years at Sangu, Shell handed over all of its upstream assets and undertakings to Cairn Energy in 2004.
Petrobangla officials alleged that due to faulty design by the Shell contractors during Sangu exploration, the field underwent repair works quite frequently after the initiation of gas production at the field.