Tender for drilling 26 onshore wells likely to be delayed

FE Team | Published: October 20, 2024 22:46:16

The government's initiative to invite an open tender for the drilling of 26 wells across various onshore gas fields, aimed at boosting domestic gas production, is likely to face a delay of another month, according to official sources.
The delay is primarily due to the ongoing preparation of tender documents, the sources indicated, reports UNB.
Three gas exploration and production companies under the state-owned Bangladesh Minerals, Oil, and Gas Corporation, commonly known as Petrobangla - Sylhet Gas Fields Limited (SGFL), Bangladesh Gas Fields Company Limited (BGFCL), and Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) - were expected to float the tender by the second week of October.
However, the companies were unable to do so as the documents were not finalised for publication in newspapers and on relevant government websites.
Earlier, at a press briefing on October 3 at the Energy and Mineral Resources Division, Petrobangla chairman Zanendra Nath Sarker announced that he had sent a proposal to the ministry for approval and expected that the tender would be invited within a week of receiving the green light.
Power and Energy Adviser Muhammad Fouzul Kabir Khan, speaking at the same briefing, assured that the government would soon float an open tender to drill 26 wells in different gas fields to increase domestic gas production.
He said that the government would refrain from awarding contracts on a G-to-G basis or signing unsolicited agreements with foreign companies. "This initiative aims to reduce our reliance on imported LNG, which is costly and drains foreign currency," said the adviser.
Regarding the delay, Fouzul Kabir told UNB that his ministry is seeking assistance from a procurement expert in preparing the tender documents, which has contributed to the time taken.
Petrobangla chairman Zanendra Nath Sarker explained that, historically, documents for similar contracts were prepared under the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010. "But this time, we must adhere to the Public Procurement Rules (PPR) 2008 to invite an open tender, which is causing the delay."
He expressed optimism that SGFL could issue the tender within a week, while BGFCL and BAPEX may require the full month to be ready.
At the October 3 briefing, the Energy Adviser also highlighted a government plan to drill 100 wells between 2025 and 2028.
Of these, 69 will be exploration and development wells, while the remaining 31 will be work-over wells. BAPEX will drill 43 of the 69 exploration wells, while the remaining 26 wells will be outsourced to contractors via open tender.
BAPEX will use its own rigs to drill 33 wells across various gas fields, with another 10 wells set to be drilled using rented rigs.
"We aim to fully utilise BAPEX's capabilities," the adviser told reporters.