Reassessed reserve of Bibiyana gas field
Thursday, 24 September 2009
That the gas reserve at Bibiyana field in Habiganj is 4.0 trillion cubic feet (tcf) more than what was projected earlier is a piece of welcome news for the nation, which has been experiencing energy crunch and, consequently, severe power deficit. Chevron, the US oil giant, has recently communicated to the government about the revised reserve figure after analyzing pressure at the field and the volume of the daily gas production. The internationally-renowned expert firm, the D&M, was engaged by the Chevron to carry out the reassessment of the Bibiyana reserve. The revised reserve estimate, according to Petrobangla officials, would enable the country to have additional gas worth over $11.3 billion on the basis of current prices.
Notwithstanding the fact that the estimated additional reserve would help meet gas requirement of the country for only two more years beyond the projected end of the country's entire gas stock, yet it would mean a lot to hundreds of industries and a good number of power plants now suffering from acute gas shortage. The problems of gas and power shortage are among the major hurdles to investments, both domestic and foreign. The World Investment Report 2009 prepared by the UNCTAD that was released recently also listed these factors, along with ongoing global recession for a slowdown in investments in the country.
However, while receiving the revised estimate done by the Chevron with guarded optimism, the Petrobangla has said it would thoroughly examine the report received from the Chevron before taking any decision. If the Chevron revised estimate is found authentic, the government might soon go for enhanced production of gas from the Bibiyana field, which is now supplying the largest volume of gas daily to the national grid. However, there is some reason for the Petrobangla to exercise caution about such estimates. For, at least one such estimate given by another international oil company, Cairn, has turned out to be wrong. Excessive extraction of gas on the basis of the reassessed reserve has almost led to premature drying up of the Sangu gas field in the offshore. The Sangu now produces only 50 million cubic feet per day (mcfd) down from 200 mcfd two years back. Besides, the Petrobangla would be inviting trouble for it if it does not itself scrutinise the Chevron estimate on Bibiyana reserve and also if it goes for increased gas production from the field, without further verification. Otherwise, local experts, who are even strongly opposed to the current rate of recovery at 600 mcfd by Chevron, might make life difficult for the state-owned oil and gas entity.
While appropriately evaluating the Chevron's revised assessment of the Bibiyana reserve, the Petrobangla does need to engage renowned expert firms on its own to reassess the reserves of some of the gas fields in the country. This has become all the more necessary because of the indications about, what it can be said, inaccurate assessment of, at least, one of the largest gas fields of the country at Titas. The assessment of the Titas reserve done in the sixties had indicated a reserve of 3.0 tcf. Since the commissioning of the gas field until now, the same volume of gas has already been extracted from the Titas and existing pressure does indicate the presence of an equivalent volume of extractable gas in the field. Such development might happen in the case of some other fields. However, instead of wasting time on guesstimate, the Petrobangla should get the gas reserves of those fields -- which have the potential of having deposits beyond their earlier assessment -- re-assessed. Such re-assessment would cost the Petrobangla some amount of money. But under the prevailing energy scenario, the government should make adequate funds available to allow the state oil and gas corporation to spend the same.
Notwithstanding the fact that the estimated additional reserve would help meet gas requirement of the country for only two more years beyond the projected end of the country's entire gas stock, yet it would mean a lot to hundreds of industries and a good number of power plants now suffering from acute gas shortage. The problems of gas and power shortage are among the major hurdles to investments, both domestic and foreign. The World Investment Report 2009 prepared by the UNCTAD that was released recently also listed these factors, along with ongoing global recession for a slowdown in investments in the country.
However, while receiving the revised estimate done by the Chevron with guarded optimism, the Petrobangla has said it would thoroughly examine the report received from the Chevron before taking any decision. If the Chevron revised estimate is found authentic, the government might soon go for enhanced production of gas from the Bibiyana field, which is now supplying the largest volume of gas daily to the national grid. However, there is some reason for the Petrobangla to exercise caution about such estimates. For, at least one such estimate given by another international oil company, Cairn, has turned out to be wrong. Excessive extraction of gas on the basis of the reassessed reserve has almost led to premature drying up of the Sangu gas field in the offshore. The Sangu now produces only 50 million cubic feet per day (mcfd) down from 200 mcfd two years back. Besides, the Petrobangla would be inviting trouble for it if it does not itself scrutinise the Chevron estimate on Bibiyana reserve and also if it goes for increased gas production from the field, without further verification. Otherwise, local experts, who are even strongly opposed to the current rate of recovery at 600 mcfd by Chevron, might make life difficult for the state-owned oil and gas entity.
While appropriately evaluating the Chevron's revised assessment of the Bibiyana reserve, the Petrobangla does need to engage renowned expert firms on its own to reassess the reserves of some of the gas fields in the country. This has become all the more necessary because of the indications about, what it can be said, inaccurate assessment of, at least, one of the largest gas fields of the country at Titas. The assessment of the Titas reserve done in the sixties had indicated a reserve of 3.0 tcf. Since the commissioning of the gas field until now, the same volume of gas has already been extracted from the Titas and existing pressure does indicate the presence of an equivalent volume of extractable gas in the field. Such development might happen in the case of some other fields. However, instead of wasting time on guesstimate, the Petrobangla should get the gas reserves of those fields -- which have the potential of having deposits beyond their earlier assessment -- re-assessed. Such re-assessment would cost the Petrobangla some amount of money. But under the prevailing energy scenario, the government should make adequate funds available to allow the state oil and gas corporation to spend the same.