Cairn Energy asked to clarify info concealment
Tuesday, 21 October 2008
M Azizur Rahman
The energy ministry has sought clarifications from Cairn Energy of Scotland for concealing information over sharp slide of Sangu gas reserves that has tainted fresh industrialisation in Chittagong for over the last one year, officials said Monday.
The ministry has assigned the state-owned Petrobangla to dig into the matter and ask Cairn formally to provide clarifications immediately.
The energy ministry's recent move came in line with a decision from a high-level meeting that took place following the drop of Sangu production by one-third this month.
"The Petrobangla has been asked to detect the issue of concealing information over Sangu reserves and write a letter strongly to Cairn Energy seeking clarifications," energy secretary Mohammad Mohsin told the FE Monday.
He said necessary actions would be taken after getting Cairn's clarifications.
Several years ago Cairn informed Petrobangla that Sangu's estimated gas reserve was a massive 1.3 trillion cubic feet (Tcf) and the quantity of recoverable gas would be 900 billion cubic feet (Bcf).
The company claimed that it could produce gas to the tune of 200 million cubic feet per day (mmcfd) from Sangu riding on its significantly big reserve.
In its annual report of 2006 the Cairn slashed its reserve data drastically saying that the Sangu gas reserve was only 247 Bcf.
Later in August this year Cairn said that it has only 14 Bcf remaining reserve in Sangu
It also said that gas production from the field would decrease to about 25 mmcfd until September 2009 before the 14Bcf reserve exhausted.
There will be no economically viable gas in the field after September 2009, it said.
The company did not inform Petrobangla officially about the Sangu's reserve position, a senior Petrobangla official alleged.
The company also got its US$ 6.0 million investment proposal approved last month to shore up gas supply from Sangu until 2011 after installing compressors by May 2009. But immediately after approving the Cairn's investment proposal, Sangu's production started sliding alarmingly, which reached its lowest ever 33 mmcfd Saturday.
The energy ministry has sought clarifications from Cairn Energy of Scotland for concealing information over sharp slide of Sangu gas reserves that has tainted fresh industrialisation in Chittagong for over the last one year, officials said Monday.
The ministry has assigned the state-owned Petrobangla to dig into the matter and ask Cairn formally to provide clarifications immediately.
The energy ministry's recent move came in line with a decision from a high-level meeting that took place following the drop of Sangu production by one-third this month.
"The Petrobangla has been asked to detect the issue of concealing information over Sangu reserves and write a letter strongly to Cairn Energy seeking clarifications," energy secretary Mohammad Mohsin told the FE Monday.
He said necessary actions would be taken after getting Cairn's clarifications.
Several years ago Cairn informed Petrobangla that Sangu's estimated gas reserve was a massive 1.3 trillion cubic feet (Tcf) and the quantity of recoverable gas would be 900 billion cubic feet (Bcf).
The company claimed that it could produce gas to the tune of 200 million cubic feet per day (mmcfd) from Sangu riding on its significantly big reserve.
In its annual report of 2006 the Cairn slashed its reserve data drastically saying that the Sangu gas reserve was only 247 Bcf.
Later in August this year Cairn said that it has only 14 Bcf remaining reserve in Sangu
It also said that gas production from the field would decrease to about 25 mmcfd until September 2009 before the 14Bcf reserve exhausted.
There will be no economically viable gas in the field after September 2009, it said.
The company did not inform Petrobangla officially about the Sangu's reserve position, a senior Petrobangla official alleged.
The company also got its US$ 6.0 million investment proposal approved last month to shore up gas supply from Sangu until 2011 after installing compressors by May 2009. But immediately after approving the Cairn's investment proposal, Sangu's production started sliding alarmingly, which reached its lowest ever 33 mmcfd Saturday.