Cairn starts drilling in Megnama structure
Friday, 5 October 2007
M Azizur Rahman
Scottish oil company Cairn Energy has initiated drilling of exploratory well for discovery of gas in the offshore Magnama structure under block -16 in the Bay of Bengal from Wednesday last.
"The company will continue drilling at a shallow depth in Magnama structure, some 12 kilometers from the Kutubdia Island in the Bay of Bengal for next 72 days," Energy and Mineral Resources Division (EMRD) Secretary AMM Nasir Uddin told the FE Thursday.
He said the company will invest US$117 for drilling wells in offshore fields - Megnama and Hatiya - in the current winter season.
If the result of the exploratory works in Megnama gas field, having the area of 73 square kilometers, becomes positive, the company will drill an appraisal well in the same structure to assess the recoverable reserves of hydrocarbon there.
Cairn will subsequently drill production well in Megnama structure to initiate gas production, the EMRD secretary said.
If the drilling at Megnama shows negative result, the company will go for drilling exploratory well at Hatiya structure under the same block, said the EMRD secretary spelling out the Cairn's working plan.
Cairn Energy completed 3D seismic surveys in both Megnama and Hatiya in 2005 last having the indication of gas reserves to the tune of 3.5 trillion cubic feet (Tcf) and 1.8 Tcf respectively in those structures.
To conduct drilling in Megnama and Hatiya structures, Cairn has rented a brand new rig from a Norwegian company.
The company has also identified a new possible gas field at Char Jabbar in Noakhali district in block 10 with an indication of 2.8 trillion cubic feet of gas reserves.
Cairn Energy is currently operating Bangladesh's lone offshore gas field at Sangu, some 50 kilometers off the country's main Chittagong seaport.
The company is producing around 70 million cubic feet per day (mmcfd) gas from the Sangu gas field.
The country's total gas production is around 1700 mmcfd.
Production from the Sangu is, however, declining alarmingly and the company sources said it might become totally dry by next four years.
Last year, Cairn had a plan to drill an exploration well at the Hatiya, an appraisal well at South Sangu and a production well at Sangu gas field.
But after drilling wells at South Sangu and Sangu the company did not drill well at Hatiya structure, said a senior Petrobangla official.
The EMRD had endorsed the Cairn plan to invest $63 million last year.
The rough sea along with the ageing rig prevented the company from drilling at Hatiya structure, he said.
Cairn has been in Bangladesh for more than 10 years.
It has stakes in blocks 5, 7, 10 and 16 to conduct hydrocarbon exploration in the country.
Scottish oil company Cairn Energy has initiated drilling of exploratory well for discovery of gas in the offshore Magnama structure under block -16 in the Bay of Bengal from Wednesday last.
"The company will continue drilling at a shallow depth in Magnama structure, some 12 kilometers from the Kutubdia Island in the Bay of Bengal for next 72 days," Energy and Mineral Resources Division (EMRD) Secretary AMM Nasir Uddin told the FE Thursday.
He said the company will invest US$117 for drilling wells in offshore fields - Megnama and Hatiya - in the current winter season.
If the result of the exploratory works in Megnama gas field, having the area of 73 square kilometers, becomes positive, the company will drill an appraisal well in the same structure to assess the recoverable reserves of hydrocarbon there.
Cairn will subsequently drill production well in Megnama structure to initiate gas production, the EMRD secretary said.
If the drilling at Megnama shows negative result, the company will go for drilling exploratory well at Hatiya structure under the same block, said the EMRD secretary spelling out the Cairn's working plan.
Cairn Energy completed 3D seismic surveys in both Megnama and Hatiya in 2005 last having the indication of gas reserves to the tune of 3.5 trillion cubic feet (Tcf) and 1.8 Tcf respectively in those structures.
To conduct drilling in Megnama and Hatiya structures, Cairn has rented a brand new rig from a Norwegian company.
The company has also identified a new possible gas field at Char Jabbar in Noakhali district in block 10 with an indication of 2.8 trillion cubic feet of gas reserves.
Cairn Energy is currently operating Bangladesh's lone offshore gas field at Sangu, some 50 kilometers off the country's main Chittagong seaport.
The company is producing around 70 million cubic feet per day (mmcfd) gas from the Sangu gas field.
The country's total gas production is around 1700 mmcfd.
Production from the Sangu is, however, declining alarmingly and the company sources said it might become totally dry by next four years.
Last year, Cairn had a plan to drill an exploration well at the Hatiya, an appraisal well at South Sangu and a production well at Sangu gas field.
But after drilling wells at South Sangu and Sangu the company did not drill well at Hatiya structure, said a senior Petrobangla official.
The EMRD had endorsed the Cairn plan to invest $63 million last year.
The rough sea along with the ageing rig prevented the company from drilling at Hatiya structure, he said.
Cairn has been in Bangladesh for more than 10 years.
It has stakes in blocks 5, 7, 10 and 16 to conduct hydrocarbon exploration in the country.