Chevron proposes expansion of Jalalabad exploration area
Saturday, 28 March 2009
FHM Humayan Kabir
US oil company Chevron has recently sought permission from Petrobangla to explore and produce gas from new areas in Jalalabad field for meeting the growing energy demand in Bangladesh, officials said Friday.
The company has proposed to conduct seismic survey and develop wells in a 75-square kilometer land in addition to the existing 63- square kilometre area at Jalalabad field in Sylhet, Petrobangla officials said.
"Chevron has recently requested us to reconsider its proposal on conducting seismic survey and development of new wells at 75-sq-km additional area, adjacent to the existing Jalalabad gas field," Petrobangla chairman Jalal Ahmed told the FE.
"We are yet to give any decision. Our corporation Board will decide on their revised proposal," he said.
The Chevron-operated Jalalabad gas field is now producing about 138 million cubic feet of gas per day (mmcfd) from its four wells.
The US oil company in late last year sought permission to conduct 3D seismic survey at a 150-square kilometre area beyond its earmarked 63-sq. km area. But it retracted after Petrobangla put in some conditions.
Petrobangla - in that permission said if the US company finds more gas in the same structure, which is now producing 138 million cubic feet of gas per day (mmcfd), the existing gas purchase deal will be followed.
If the company finds new structure in the additional area, Petrobangla then would go for new gas purchase deals, which will be better from the existing agreement.
In the latest proposal, Chevron sought additional land beyond its relinquished ring-fenced area at Jalalabad field under block 13 in a bid to conduct 3D seismic survey and develop wells for new gas production, a senior Petrobangla official said.
He said the US company sought a clear-cut decision from the sate-owned energy corporation on their latest proposal.
Chevron said if the government allowed them to carry out seismic survey and develop wells it would go for more gas production activities from the prospective additional areas of Jalalabad field, he said.
The Petrobangla official said since the country's energy demand was growing day by day, the company might have been encouraged to expand its activities at the gas field.
All existing gas field supplies about 1880 mmcfd of gas against the demand for about 2100 mmcfd in the country.
The senior Petrobangla official said experts think that the possibility of more gas reserves in and around the existing Jalalabad field was high because for the last 10 years gas was being supplied from there without any pressure fall.
US company Chevron has so far produced nearly 461 billion cubic feet (bcf) of gas from a total of 830-bcf recoverable reserve at the Jalalalabd field, he added.
Chevron's predecessor Occidental, another US company, was awarded block 12, 13 and 14 in 1994 under two production sharing contracts.
Occidental later handed over the ring-fenced gas field Jalalabad to Chevron.
Petrobangla has been purchasing gas from the field worth hundreds of crores taka at a higher price than that of the state-run gas companies.
The US oil company is also working at Bibiyana and Moulavibazar gas fields. The two fields are supplying about 690 mmcfd of gas to the national grid.
US oil company Chevron has recently sought permission from Petrobangla to explore and produce gas from new areas in Jalalabad field for meeting the growing energy demand in Bangladesh, officials said Friday.
The company has proposed to conduct seismic survey and develop wells in a 75-square kilometer land in addition to the existing 63- square kilometre area at Jalalabad field in Sylhet, Petrobangla officials said.
"Chevron has recently requested us to reconsider its proposal on conducting seismic survey and development of new wells at 75-sq-km additional area, adjacent to the existing Jalalabad gas field," Petrobangla chairman Jalal Ahmed told the FE.
"We are yet to give any decision. Our corporation Board will decide on their revised proposal," he said.
The Chevron-operated Jalalabad gas field is now producing about 138 million cubic feet of gas per day (mmcfd) from its four wells.
The US oil company in late last year sought permission to conduct 3D seismic survey at a 150-square kilometre area beyond its earmarked 63-sq. km area. But it retracted after Petrobangla put in some conditions.
Petrobangla - in that permission said if the US company finds more gas in the same structure, which is now producing 138 million cubic feet of gas per day (mmcfd), the existing gas purchase deal will be followed.
If the company finds new structure in the additional area, Petrobangla then would go for new gas purchase deals, which will be better from the existing agreement.
In the latest proposal, Chevron sought additional land beyond its relinquished ring-fenced area at Jalalabad field under block 13 in a bid to conduct 3D seismic survey and develop wells for new gas production, a senior Petrobangla official said.
He said the US company sought a clear-cut decision from the sate-owned energy corporation on their latest proposal.
Chevron said if the government allowed them to carry out seismic survey and develop wells it would go for more gas production activities from the prospective additional areas of Jalalabad field, he said.
The Petrobangla official said since the country's energy demand was growing day by day, the company might have been encouraged to expand its activities at the gas field.
All existing gas field supplies about 1880 mmcfd of gas against the demand for about 2100 mmcfd in the country.
The senior Petrobangla official said experts think that the possibility of more gas reserves in and around the existing Jalalabad field was high because for the last 10 years gas was being supplied from there without any pressure fall.
US company Chevron has so far produced nearly 461 billion cubic feet (bcf) of gas from a total of 830-bcf recoverable reserve at the Jalalalabd field, he added.
Chevron's predecessor Occidental, another US company, was awarded block 12, 13 and 14 in 1994 under two production sharing contracts.
Occidental later handed over the ring-fenced gas field Jalalabad to Chevron.
Petrobangla has been purchasing gas from the field worth hundreds of crores taka at a higher price than that of the state-run gas companies.
The US oil company is also working at Bibiyana and Moulavibazar gas fields. The two fields are supplying about 690 mmcfd of gas to the national grid.