Tullow to raise gas output by 30pc in May
Thursday, 26 March 2009
A Z M Anas
The Irish oil group Tullow will jack up gas output by nearly 30 per cent in early May in an effort to ameliorate the surging supply crunch, officials said Wednesday.
Its Bangladesh subsidiary will add between 25 and 30 million cubic feet (mmcf) of gas per day to the national grid, bringing the total production to 130 mmcf, they said.
"It will act as a band aid to stem the growing gas crisis. Tullow Bangladesh is just acting on the government's request to boost production," a senior Petrobangla official said.
"Tullow Bangladesh is expected to begin the drilling activities at Bangura-3 Well by the middle of next month. It will take a week to complete the development work. Hopefully, the company will go into production in May," he added.
A Dhaka-based Tullow official confirmed the development but turned down a request for an interview.
The move demonstrates a growing pressure on foreign oil companies including Tullow to speed up drilling work at a time when the country reels from severe gas shortage.
State energy corporation Petrobangla can produce nearly 1850 mmcf a day against the demand of 2050 mmcf, leaving a supply shortfall of 200 mmcf.
A large number of industries, especially based in the port city of Chittagong, were either forced to close down their production units or put on hold ambitious projects as the gas crisis rambled on.
In recent times, American energy giant Chevron also ramped up production from its gas fields in Sylhet in the wake of government-run Bakhrabad plant's debacle.
Last year, the government intervened to boost daily production at the country's costliest offshore Sangu gas field when production went down to just 30 mmcf. Now the field, operated by the Scottish oil exploration group Carin Energy, can produce 56 to 57 mmcf per day.
Until recently, Petrobangla officials said, Tullow pumped in some 70 mmcf a day, but increased capacity by 30 mmcf after the government asked it to hike production.
The Irish oil group Tullow will jack up gas output by nearly 30 per cent in early May in an effort to ameliorate the surging supply crunch, officials said Wednesday.
Its Bangladesh subsidiary will add between 25 and 30 million cubic feet (mmcf) of gas per day to the national grid, bringing the total production to 130 mmcf, they said.
"It will act as a band aid to stem the growing gas crisis. Tullow Bangladesh is just acting on the government's request to boost production," a senior Petrobangla official said.
"Tullow Bangladesh is expected to begin the drilling activities at Bangura-3 Well by the middle of next month. It will take a week to complete the development work. Hopefully, the company will go into production in May," he added.
A Dhaka-based Tullow official confirmed the development but turned down a request for an interview.
The move demonstrates a growing pressure on foreign oil companies including Tullow to speed up drilling work at a time when the country reels from severe gas shortage.
State energy corporation Petrobangla can produce nearly 1850 mmcf a day against the demand of 2050 mmcf, leaving a supply shortfall of 200 mmcf.
A large number of industries, especially based in the port city of Chittagong, were either forced to close down their production units or put on hold ambitious projects as the gas crisis rambled on.
In recent times, American energy giant Chevron also ramped up production from its gas fields in Sylhet in the wake of government-run Bakhrabad plant's debacle.
Last year, the government intervened to boost daily production at the country's costliest offshore Sangu gas field when production went down to just 30 mmcf. Now the field, operated by the Scottish oil exploration group Carin Energy, can produce 56 to 57 mmcf per day.
Until recently, Petrobangla officials said, Tullow pumped in some 70 mmcf a day, but increased capacity by 30 mmcf after the government asked it to hike production.