KrisEnergy set to drill two wells in Bangora gas field

Singapore-based KrisEnergy is set to initiate drilling of two development wells in the Bangora gas field under Comilla district in October next, said sources.
The company has launched a Tk 9.75 billion (US$169.5 million) rights issue with the Singapore stock exchange to support its capital expenditure on oil and gas production in existing fields as well as near-term development projects, especially in Bangladesh and Thailand, they said.
The company is targeting drilling of two development wells beginning in the fourth quarter of this year to increase production in the Bangora gas field onshore Bangladesh.
The Petrobangla has already approved the work programmes of KrisEnergy and its partners to initiate drilling of two onshore wells.
Once completed, natural gas production from the Bangora gas field will be consolidated at the current level of around 110 million cubic feet per day (mmcfd), said the Petrobangla official.
Otherwise, natural gas production from these wells might decrease, he added.
The Bangora gas field has currently four producing gas wells having total production capacity of 110 mmcfd, which is 3.97 per cent of the country's overall natural gas output of around 2,745 mmcfd as on July 09, 2015, Petrobangla data reveals.
Gas produced from Bangora is being supplied to the country's gas-starved port city of Chittagong.
The block 09 covers 1,770 square kilometres and is located some 100 kilometres east of Dhaka.
The Bangora gas field commenced production in 2006 and lies in a gas province with substantial gas infrastructure.
KrisEnergy became the operator of block 09 after purchasing stakes from the UK-based Tullow Oil at US$ 42.35 million.
The Singapore-based firm will hold a 30 per cent working interest of the Bangora gas field.
The other partners in block 09 are Niko Exploration Ltd with a 60 per cent working interest and Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), with 10 per cent.
Apart from block 09, KrisEnergy has a joint venture (JV) with Australian Santos over a shallow water block SS-11 in Bangladesh for oil and gas exploration in the Bay of Bengal.
The JV has completed two-dimensional (2D) seismic survey in offshore block SS-11 in January this year.
The shallow water block - SS-11 is highly potential, as it is close to Myanmar's territorial water where the neighbouring country discovered huge natural gas reserves.
The block covers an area of 4,475 sq km in the Bay of Bengal. The majority of the block lies in shallow waters up to 200 metres with the furthest southwest portion extending into water depths up to 1,500 metres.
KrisEnergy holds a 45 per cent non-operated working interest in the exploration block. Santos is the operator with 45 per cent and BAPEX holds 10 per cent.
The Santos-Kris JV has committed to drill an exploration well, conduct 1,876 line kilometre 2D seismic survey and 300 sq km 3D survey, and offered a bank guarantee of $15 million for initial five years of exploration.
     The JV bidder will require investment of around $30-32 million to carry out its work plan under the production-sharing contract (PSC) during the initial years.
     The contract period for exploration will be eight years in total. The contractor will be allowed to operate and sell oil and gas for 20 years from an oil-field and for 25 years from a gas-field.
mazizur.rahman@outlook.com