Santos rolls out $100m plan for gas exploration
Star Business Report
Energy-starved industries in Chittagong could see their nagging gas crisis improve next year as energy company Santos rolled out a $100 million investment plan to drill three new wells in the Bay of Bengal.
The Australia-based gas and oil exploration firm said yesterday it plans to spend over $100 million beginning in the last quarter this year to drill three wells in Block 16 in the Bay of Bengal.
The wells will target new pools of gas not intersected by the existing Sangu field development that Santos operates.
Of the three wells, Sangu-11 will be drilled from the Sangu platform and if successful, the port city will get some relief, said John Chambers, president of Santos Sangu Field Ltd.
Chambers was speaking at a media briefing at Sonargaon Hotel in Dhaka to announce his company’s upcoming plans in Bangladesh. Ajay Nambiar, vice president (planning) of Santos, and ABA Siraj Uddowlah, vice president (government and public affairs), were also present.
Chittagong now receives about 216 million cubic feet of gas a day (mmfcd), which is nearly half of the demand. If the drilling of the three wells turns out successful, the company will be able to supply 50 to 60mmcfd in addition to 16mmfcd it supplies now.
The officials of Santos said Sangu hubs could deliver up to 500mmcfd, as the region is well-placed to bring new gas to Chittagong market. “We have infrastructure and are bold to invest. But the government has to make the PSC (production sharing contract) investment-friendly to allow the market set the price,” Chambers said.
The other two wells will target prospects approximately five kilometres away from the Sangu platform.