Tullow raises Bangura gas output by 20pc

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M Azizur Rahman
Irish oil and gas exploration company Tullow has raised gas output by 20 per cent from the onshore Bangura gas field to meet the mounting demand of industrial units and power plants, officials said Saturday.
The company is now producing 120 million cubic feet per day (mmcfd) of gas from 100 mmcfd previously in the area located in Comilla under block 9, some
100 kilometers off the capital, said a senior Petrobangla official.
He said the augmented gas output will facilitate supply of gas to factories and power plants.
The current gas supply crunch has forced state-owned Petrobangla to suspend distribution of the fuel to new industries and shutdown of three state-owned fertiliser factories.
Power plants with a total generation capacity of around 600 megawatts (mw) have remained closed due to the gas shortage.
Energy ministry officials said the successful work over the Bangura -3 well by state-owned Bangladesh Petroleum Exploration Company (Bapex) has helped raise the output.
Tullow, the operator of Bangura gas field, had appointed Bapex to work over the well as gas production from the well failed after initial drilling early this year.
"Bangura-3 well started producing gas to the tune of 20-25 mmcfd after the work over," Bapex managing director Imad Uddin told the FE.
Bangura output had, however, fallen to as low as 85 mmcfd immediately after the work over due to a drop in gas pressure, which was revamped later.
Tullow has a 30 per cent operating stake in block 9 with Canada's Niko Resources 60 per cent and Bapex 10 per cent.
The field started producing in May 2006 at the rate of 70 mmcfd.
The government selected Tullow for oil and gas exploration in offshore block SS-08-05 under the country's 2008 licensing round. The company is now waiting for signing production sharing contract (PSC) with Petrobangla,
The company along with its partners - French Total, Thai PTTEP and US Oakland and Rexwood - , however, relinquished exploration rights for blocks 17 and 18 in March 2009.
Currently, Bangladesh produces around 1980 mmcfd of gas, while the demand exceeds 2200 mmcfd.
The government has decided not to provide new gas connections to bulk consumers until the production reaches 2,200 mmcfd.