Petrobangla seeks HC order for paying gas bills to Niko
Sunday, 12 October 2008
FE Report
Petrobangla has asked the Canadian oil company Niko Resources to try increase gas production from Feni field aiming to meet the ever-growing demand, an official said Saturday.
Niko Resources, however, sought payment of its outstanding arrear bills from state-owned Petrobangla for developing the field to produce more gas.
"We've recently applied to the High Court seeking permission to pay some arrear bills to Niko so that it can spend the money to develop two more wells in Feni field," Petrobangla chairman Jalal Ahmed told the FE Saturday.
"We expect that the court will allow some payment to Niko so that the fund could be utilised for drilling new wells in Feni," he said.
The High Court (HC) on September 12, 2005 asked the government to stop gas bill payment to Niko and freeze all bank accounts of the Canadian oil company in Bangladesh.
Following a serial blow-out in Tengratila in early 2005, three human rights organisations the Bangladesh Environment Lawyers' Association (Bela), Ain-O-Shalish Kendra and Odhikar- jointly field a writ petition against the Canadian company and the HC gave the above orders.
Petrobangla sources said so far there are some Tk 40 million outstanding gas bills owed to Niko. Petrobangla purchase gas from the Feni field at the rate of $1.75 per thousand cubic feet.
If we can clear some bill to Niko, it will invest in the field and is expected to produce some 40-million cubic feet of gas per day (mmcfd) from the Feni field within next six months, Jalal Ahmed said.
"As we need to augment our gas supply following the crisis across the country especially in the Chittagong region, increased gas production from Feni field will be very crucial at this moment," the Petrobangla chief said.
He said the Canadian company has already showed interest to invest in the Feni field for drilling two more wells to raise the gas production.
Now Feni field produces only 3.4 mmcfd of gas. The remaining total recoverable gas reserve at the field stood at about 69 billion cubic feet, Petrobangla data showed.
The Canadian company operates the Feni gas field in joint-venture with the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).
Bangladesh is facing more than 200 mmcfd of gas supply shortage over the last couple of years impeding power generation, industrial growth and other development activities.
All the operative gas fields produce about 1680mmcfd of gas against the demand for about 1900mmcfd.
"I think some Tk 20 million will be required to be invested in developing the two wells in Feni," he said.
"We'll give them only enough fund for developing the gas wells from the outstanding arrears bills. We will not clear the full bill until settlement of the case on Tengratila gas field blow-out," Mr. Ahmed said.
Niko-operated Tengratila gas filed in Sunamganj blew out two occasions in January and June of 2005 when the company was drilling in the field.
The government a few months ago filed a case against Niko seeking about Tk 7.59 billion compensation for Tengratila blow-outs. The case is pending with the court.
Petrobangla has asked the Canadian oil company Niko Resources to try increase gas production from Feni field aiming to meet the ever-growing demand, an official said Saturday.
Niko Resources, however, sought payment of its outstanding arrear bills from state-owned Petrobangla for developing the field to produce more gas.
"We've recently applied to the High Court seeking permission to pay some arrear bills to Niko so that it can spend the money to develop two more wells in Feni field," Petrobangla chairman Jalal Ahmed told the FE Saturday.
"We expect that the court will allow some payment to Niko so that the fund could be utilised for drilling new wells in Feni," he said.
The High Court (HC) on September 12, 2005 asked the government to stop gas bill payment to Niko and freeze all bank accounts of the Canadian oil company in Bangladesh.
Following a serial blow-out in Tengratila in early 2005, three human rights organisations the Bangladesh Environment Lawyers' Association (Bela), Ain-O-Shalish Kendra and Odhikar- jointly field a writ petition against the Canadian company and the HC gave the above orders.
Petrobangla sources said so far there are some Tk 40 million outstanding gas bills owed to Niko. Petrobangla purchase gas from the Feni field at the rate of $1.75 per thousand cubic feet.
If we can clear some bill to Niko, it will invest in the field and is expected to produce some 40-million cubic feet of gas per day (mmcfd) from the Feni field within next six months, Jalal Ahmed said.
"As we need to augment our gas supply following the crisis across the country especially in the Chittagong region, increased gas production from Feni field will be very crucial at this moment," the Petrobangla chief said.
He said the Canadian company has already showed interest to invest in the Feni field for drilling two more wells to raise the gas production.
Now Feni field produces only 3.4 mmcfd of gas. The remaining total recoverable gas reserve at the field stood at about 69 billion cubic feet, Petrobangla data showed.
The Canadian company operates the Feni gas field in joint-venture with the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).
Bangladesh is facing more than 200 mmcfd of gas supply shortage over the last couple of years impeding power generation, industrial growth and other development activities.
All the operative gas fields produce about 1680mmcfd of gas against the demand for about 1900mmcfd.
"I think some Tk 20 million will be required to be invested in developing the two wells in Feni," he said.
"We'll give them only enough fund for developing the gas wells from the outstanding arrears bills. We will not clear the full bill until settlement of the case on Tengratila gas field blow-out," Mr. Ahmed said.
Niko-operated Tengratila gas filed in Sunamganj blew out two occasions in January and June of 2005 when the company was drilling in the field.
The government a few months ago filed a case against Niko seeking about Tk 7.59 billion compensation for Tengratila blow-outs. The case is pending with the court.