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Drilling gas wells by Gazprom or Bapex

Engr. S.A. Mansoor | Wednesday, 14 January 2015


The report published in the "Trade & Market" segment of this newspaper on January 4, 2015 by all means should be a cause for concern. A rethinking on the matter in overall national interest is called for. The salient issues that need to be considered are:
 First and foremost, if 'Bapex' can drill gas wells at lower costs, which comes to below US $ 9.0 millions compared to average cost of getting Gazprom (Russian Company) to do the job at a cost of US $20 millions, why should the country go for drilling of gas wells by Gazprom?
Secondly, Gazporm failed to meet the time target for drilling 10 gas wells in a period of 20 months with a production target of 200 mmcft of natural gas per day. The time frame had to be extended to December 2014 from November 2013. In stark contrast to Bapex, Gazprom was paid US$ 200 millions.
 Thirdly, Petrobangla could not get the target natural gas flow of 200mmcft per day from these wells. Instead, eight out of the 10 wells drilled, gave an output of only 198mmcft of natural gas per day. This was only 54 per cent of the target of 200mmcft from the eight wells recording a shortfall of over 40 percent. Has this shortfall in output, been compensated by Gazporm in any manner? Nothing was stated about it in the report.
Will it be too much for to ask if any penalties or fines were realised from Gazprom for its failure to complete the job in time as well as in terms of output, as stated in paras 2 and 3 above?
Finally, the Bapex should be awarded this important national project. It can easily spend the balance amount on procuring equipment and other things needed for carrying out the drilling work. It should be provided with performance bonus if it succeeds in doing the job quicker than Gazporm. Will the Petrobangla throw some light on this important national issue?