Cairn names Chinese firm to conduct survey in Magnama
Wednesday, 11 November 2009
FE Report
The Scottish Cairn Energy has appointed Chinese geophysical company -- BGP Inc -- to conduct survey in the prospective shallow offshore Magnama field at a cost of US$ 17 million, company official said.
The Chinese company already started mobilising equipment to initiate the 3D seismic survey at Magnama, some 12 kilometers off the Kutubdia Island in the Bay of Bengal under block -16 to better delineate gas reserves in the offshore structure.
Following its initial survey last year Cairn said that it 'encountered' gas reserve at Magnama, having an area of 73 square kilometers, and subsequently submitted appraisal programme to the state-owned Petrobangla.
The outcome of the 3D survey would help the company confirm the quantity of gas reserve there and decide how much of it can be extracted commercially.
Based on an encouraging outcome Cairn would go for drilling appraisal and production wells in the Magnama structure, said a company official.
Otherwise it would go for drilling exploratory well at Hatiya structure under the same block, the official added.
But energy experts are optimistic about good reserves both in Magnama and Hatiya structures.
Encouraged by initial surveys Cairn sought third party sales right from Petrobangla for Magnama and Hatiya output and subsequently got nod from the state-owned company.
"We approved the Cairn's budget worth $17 million for surveying Magnama structure as gas discovery from the structure would be crucial for the gas starved greater Chittagong region," a senior Petrobangla official said.
A slew of gas-guzzling Chittagong firms remained shut due to gas supply crunch in the port city.
A massive drop in the country's lone offshore Sangu field in 2007 led to the gas crisis in the Chittagong region
Gas output from Sangu has now fallen more than 80 per cent to around 40 million cubic feet per day (mmcfd) since it started supplying in late 1990s.
Subsequently Petrobangla has suspended gas supply to new industrial plants in Chittagong a couple of years ago, forcing the region's big conglomerates to shelve their expansion plans.
The Scottish Cairn Energy has appointed Chinese geophysical company -- BGP Inc -- to conduct survey in the prospective shallow offshore Magnama field at a cost of US$ 17 million, company official said.
The Chinese company already started mobilising equipment to initiate the 3D seismic survey at Magnama, some 12 kilometers off the Kutubdia Island in the Bay of Bengal under block -16 to better delineate gas reserves in the offshore structure.
Following its initial survey last year Cairn said that it 'encountered' gas reserve at Magnama, having an area of 73 square kilometers, and subsequently submitted appraisal programme to the state-owned Petrobangla.
The outcome of the 3D survey would help the company confirm the quantity of gas reserve there and decide how much of it can be extracted commercially.
Based on an encouraging outcome Cairn would go for drilling appraisal and production wells in the Magnama structure, said a company official.
Otherwise it would go for drilling exploratory well at Hatiya structure under the same block, the official added.
But energy experts are optimistic about good reserves both in Magnama and Hatiya structures.
Encouraged by initial surveys Cairn sought third party sales right from Petrobangla for Magnama and Hatiya output and subsequently got nod from the state-owned company.
"We approved the Cairn's budget worth $17 million for surveying Magnama structure as gas discovery from the structure would be crucial for the gas starved greater Chittagong region," a senior Petrobangla official said.
A slew of gas-guzzling Chittagong firms remained shut due to gas supply crunch in the port city.
A massive drop in the country's lone offshore Sangu field in 2007 led to the gas crisis in the Chittagong region
Gas output from Sangu has now fallen more than 80 per cent to around 40 million cubic feet per day (mmcfd) since it started supplying in late 1990s.
Subsequently Petrobangla has suspended gas supply to new industrial plants in Chittagong a couple of years ago, forcing the region's big conglomerates to shelve their expansion plans.