Gazprom starts drilling 3rd well at Begumganj

M Azizur Rahman Russian oil and gas giant Gazprom has started drilling the third well in Begumganj gas field after drilling Srikail-3 and Titas-20 wells under its 10-well drilling programme, a top official said Friday. "Gazprom has already drilled around 400 metres into the Begumganj gas field after starting the drilling last week," Petrobangla chairman Hussain Monsur told the FE. The Russian firm has started supplying natural gas commercially in Bangladesh a couple of weeks ago from Srikail-3 onshore well, located in Comilla, some 86km southeast of the capital, he said. The Srikail well is supplying around 19 million cubic feet per day (mmcfd) of gas to the national grid. But the Srikail-3 well, owned by state-owned Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), has the potential to supply up to 30 mmcfd of gas, said a Petrobangla official. The Russian firm completed drilling the Srikail-3 well in late April as the first of its 10-well drilling programme in different state-run gas fields owned by three subsidiary gas companies of state-owned Petrobangla. The Russian firm started drilling Srikail-3 well, owned by Petrobangla's wholly-owned subsidiary Bapex, on March 8. It completed the drilling of the second onshore well Titas-20 on May 20. But water has entered the well after drilling, as water pressure outside the well was higher than the gas pressure inside. The well was not perforated 'appropriately' that led to spillage of water into the well, said a senior Petrobangla official. Gazprom, however, agreed to 'reduce' the water level of the well to ensure the start of gas supply from the well, he said. The Russian firm will not charge rental rig fees for this purpose, he added. The firm has been involved in drilling onshore gas wells in Bangladesh as a contractor. Gazprom is the first foreign oil and gas company engaged in operation in Bangladesh on a contract basis. Other international oil and gas companies active in Bangladesh operate under production-sharing contracts or in joint venture with Bapex. The Russian company signed deals with Petrobangla subsidiaries Bangladesh Gas Fields Company Ltd, or BGFCL, Sylhet Gas Fields Ltd, and Bapex on April 26, 2012, to drill 10 development wells across six gas fields at a total cost of US$ 193.5 million. Gazprom's contracts cover construction of the drilling pad, camp warehouse and site preparation, rig shifting and commissioning, procurement of drilling materials, engagement of third party services, drilling, testing and commissioning and insurance. It has contracts to drill four development wells in BGFCL's Titas gas field, the country's second largest one, which has been producing around 461 mmcfd from 16 wells; one well in SGFL's Rashidpur gas field, which produces an average of 47 mmcfd gas from four wells; and five wells across four smaller gas fields, including Srikail, owned by Bapex. Gazprom has brought in two drilling rigs to complete the drilling of onshore gas wells in Bangladesh. Petrobangla is eyeing to produce natural gas from all these onshore gas wells by the end of 2013. Petrobangla approached Gazprom to develop the wells after Polish oil and gas explorer Poszukiwania Nastyi Gazu Krakow backed out after being selected in a competitive tender two years ago. The country subsequently passed a law that bypasses the tender process and prevents deals inked under the new law from being challenged in court. Bangladesh's natural gas output currently hovers around 2,260 mmcfd against the demand for over 2,700-3,000 mmcfd.