Chevron asked to raise gas output
Saturday, 17 July 2010
M Azizur Rahman
The government has asked the US oil giant Chevron to boost natural gas output by an additional 1,000 million cubic feet per day (mmcfd) within the next couple of years to ease the country's mounting energy demands, a top government official said.
The state-owned Petrobangla has assured the US firm of building a $250 million pipeline to evacuate additional gas to the gas grid.
"We have asked Chevron to expedite development works in all of its gas fields in Bangladesh and increase its overall output by an additional 1,000 mmcfd within," Prime Minister's Adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury told the FE Thursday.
He said the government would build necessary pipeline at own cost for evacuating natural gas from Chevron-operated gas fields.
Earlier in February the Petrobangla had asked Chevron to increase only Bibiyana output immediately after accepting latest reserve projection for the gas field that doubled the amount of gas available to 5.50 trillion cubic feet (Tcf).
But Petrobangla this time has asked it to increase production from all its gas fields to ensure the country's future energy security.
As on July 15, 2010 Chevron's total output from three of its operating gas fields - Bibiyana, Maulavibazar and Jalalabad - was 893 mmcfd, which was nearly half of the
Continued to page 7 col. 1M Azizur Rahman
The government has asked the US oil giant Chevron to boost natural gas output by an additional 1,000 million cubic feet per day (mmcfd) within the next couple of years to ease the country's mounting energy demands, a top government official said.
The state-owned Petrobangla has assured the US firm of building a $250 million pipeline to evacuate additional gas to the gas grid.
"We have asked Chevron to expedite development works in all of its gas fields in Bangladesh and increase its overall output by an additional 1,000 mmcfd within," Prime Minister's Adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury told the FE Thursday.
He said the government would build necessary pipeline at own cost for evacuating natural gas from Chevron-operated gas fields.
Earlier in February the Petrobangla had asked Chevron to increase only Bibiyana output immediately after accepting latest reserve projection for the gas field that doubled the amount of gas available to 5.50 trillion cubic feet (Tcf).
But Petrobangla this time has asked it to increase production from all its gas fields to ensure the country's future energy security.
As on July 15, 2010 Chevron's total output from three of its operating gas fields - Bibiyana, Maulavibazar and Jalalabad - was 893 mmcfd, which was nearly half of the country's overall output of 1980 mmcfd.
Out of the total production Bibiyana's output was 700 mmcfd, Jalalabad's 137 mmcfd and Maulavibazar 56 mmcfd.
"We have asked Chevron to increase production seeing the potentials of the Chevron operated gas fields," Petrobangla Chairman Hossain Monsur said.
A 100 kilometre pipeline would also be constructed to facilitate evacuation of increased gas, he said.
The pipeline would be built with government fund and tender for setting up the pipeline would be floated soon, said the Petrobangla chief.
Unlike the previous occasions, Petrobangla would not approach the donor agencies for funding the pipeline considering time constraints, Dr Mansur added.
The pipeline would be parallel to an existing pipeline and state-owned Gas Transmission Company Ltd would implement the pipeline project to be built from Maulavibazar to Ashuganj.
Besides, Chevron is now working for setting up a compression station at Muchai, which is also expected to support additional production from the existing producing fields starting in 2012, said a Chevron official.
The US company earlier informed Petrobangla about the prospects of increasing gas output from its existing gas fields but stressed that necessary pipeline would be required to be installed.
Chevron holds interest in three production sharing contracts in Bangladesh, owning rights to explore gas in more than 10,000 square kilometres.
Chevron Bangladesh has a 98 per cent interest in the Bibiyana, Jalalabad and Moulavibazar fields.
Chevron also has a 43 per cent interest in Block 7 in southern Bangladesh where the company collected seismic data in December 2009.
Evaluation and processing are under way, and an exploration well is planned to be completed by 2011.
Bangladesh is now reeling under an acute gas shortfall of around 500 mmcfd that has forced Petrobangla to suspend gas supplies to new industries.
It also rations gas supplies to industries.
Bangladesh urgently needs new energy supplies as scores of industries remain shut only due to gas crisis.
The country's economy has been growing at an average of six per cent since 2003-2004, the highest rate since independence in 1971, and expanded industrial activities have raised the demand for energy.
The government has asked the US oil giant Chevron to boost natural gas output by an additional 1,000 million cubic feet per day (mmcfd) within the next couple of years to ease the country's mounting energy demands, a top government official said.
The state-owned Petrobangla has assured the US firm of building a $250 million pipeline to evacuate additional gas to the gas grid.
"We have asked Chevron to expedite development works in all of its gas fields in Bangladesh and increase its overall output by an additional 1,000 mmcfd within," Prime Minister's Adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury told the FE Thursday.
He said the government would build necessary pipeline at own cost for evacuating natural gas from Chevron-operated gas fields.
Earlier in February the Petrobangla had asked Chevron to increase only Bibiyana output immediately after accepting latest reserve projection for the gas field that doubled the amount of gas available to 5.50 trillion cubic feet (Tcf).
But Petrobangla this time has asked it to increase production from all its gas fields to ensure the country's future energy security.
As on July 15, 2010 Chevron's total output from three of its operating gas fields - Bibiyana, Maulavibazar and Jalalabad - was 893 mmcfd, which was nearly half of the
Continued to page 7 col. 1M Azizur Rahman
The government has asked the US oil giant Chevron to boost natural gas output by an additional 1,000 million cubic feet per day (mmcfd) within the next couple of years to ease the country's mounting energy demands, a top government official said.
The state-owned Petrobangla has assured the US firm of building a $250 million pipeline to evacuate additional gas to the gas grid.
"We have asked Chevron to expedite development works in all of its gas fields in Bangladesh and increase its overall output by an additional 1,000 mmcfd within," Prime Minister's Adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury told the FE Thursday.
He said the government would build necessary pipeline at own cost for evacuating natural gas from Chevron-operated gas fields.
Earlier in February the Petrobangla had asked Chevron to increase only Bibiyana output immediately after accepting latest reserve projection for the gas field that doubled the amount of gas available to 5.50 trillion cubic feet (Tcf).
But Petrobangla this time has asked it to increase production from all its gas fields to ensure the country's future energy security.
As on July 15, 2010 Chevron's total output from three of its operating gas fields - Bibiyana, Maulavibazar and Jalalabad - was 893 mmcfd, which was nearly half of the country's overall output of 1980 mmcfd.
Out of the total production Bibiyana's output was 700 mmcfd, Jalalabad's 137 mmcfd and Maulavibazar 56 mmcfd.
"We have asked Chevron to increase production seeing the potentials of the Chevron operated gas fields," Petrobangla Chairman Hossain Monsur said.
A 100 kilometre pipeline would also be constructed to facilitate evacuation of increased gas, he said.
The pipeline would be built with government fund and tender for setting up the pipeline would be floated soon, said the Petrobangla chief.
Unlike the previous occasions, Petrobangla would not approach the donor agencies for funding the pipeline considering time constraints, Dr Mansur added.
The pipeline would be parallel to an existing pipeline and state-owned Gas Transmission Company Ltd would implement the pipeline project to be built from Maulavibazar to Ashuganj.
Besides, Chevron is now working for setting up a compression station at Muchai, which is also expected to support additional production from the existing producing fields starting in 2012, said a Chevron official.
The US company earlier informed Petrobangla about the prospects of increasing gas output from its existing gas fields but stressed that necessary pipeline would be required to be installed.
Chevron holds interest in three production sharing contracts in Bangladesh, owning rights to explore gas in more than 10,000 square kilometres.
Chevron Bangladesh has a 98 per cent interest in the Bibiyana, Jalalabad and Moulavibazar fields.
Chevron also has a 43 per cent interest in Block 7 in southern Bangladesh where the company collected seismic data in December 2009.
Evaluation and processing are under way, and an exploration well is planned to be completed by 2011.
Bangladesh is now reeling under an acute gas shortfall of around 500 mmcfd that has forced Petrobangla to suspend gas supplies to new industries.
It also rations gas supplies to industries.
Bangladesh urgently needs new energy supplies as scores of industries remain shut only due to gas crisis.
The country's economy has been growing at an average of six per cent since 2003-2004, the highest rate since independence in 1971, and expanded industrial activities have raised the demand for energy.