Gazprom team arrives today with revised proposal

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Petrobangla seeks 20pc cost cut in drilling 10 gas wells
Gazprom team arrives today with revised proposal
Shamim Jahangir

A high-powered delegation of Russian energy giant Gazprom will arrive here today to submit a revise financial proposal to drill 10 development and exploration wells in the country, a senior official said.

Three Gazprom delegation lead by its senior executive Alexander, would stay in Dhaka till next Friday, the Petrobangla official said.

The Gazprom has already agreed to pay five percent of the performance guarantees and will offer a rational financial offer to Bangladesh to explore gas in the 10 wells, the official said quoting from the recent development of a letter submit to the Petrobangla.

In October 10 this year, the Gazprom agreed to submit a revised financial offer to drill 10 wells as per request from the Petrobangla to reduce the costs by 20 percent.

JSC Gazprom offered a proposal to drill each of the five wells under Sylhet Gas Field Company Limited (SGFCL) and Bangladesh Gas Field Company Limited (BGFCL) at an estimated cost of Tk 1.53 billion or $20.47 million.

Petrobangla would have spent around Tk 7.65 billion to drill five wells under BGFCL and SGFCL.

Gazprom proposed $7.47 million for identifying the reasons for seepage and taking additional precautionary and contingency planning for confronting any untoward incidents, Petrobangla official said.

The Russian company offered another proposal to dig five more wells, each at Tk 1.42 billion or $19.02 million, at a total of Tk 7.105 billion under Bangladesh Petroleum Exploration Company Limited (BAPEX). The cost for drilling each well would be around Tk 1.476 billion on an average.

Later, the Petrobangla requested Gazprom to consider 20 percent reduction of its proposed price on drilling the wells as the proposed prices would not be viable for the projects.

But BAPEX recently spent around Tk 750 million to drill an exploratory well in Sundolpur.

According to Petrobangla officials, US company Chevron drilled each of the wells at Moulvibazar gas field – well no-6, 7 and 8 at a cost of $15 million this year while the same company drilled a separate well at Char Kajol at a total cost of $26 million in 2011. Besides, Irish company Tullow drilled another well in Bangora at $12.90 million in 2005.

However, the US company offered to drill six development wells at $120 million, officials said.

The cost of drilling and completion of wells varies on the basis of technical, technological grounds and other circumstances, Petrobangla official said.

Gazprom earlier submitted a time schedule in mid of current year to drill the wells within 20 months.

Petrobangla is expected to produce around 220mmcfd (million cubic feet gas per day) from 10 wells to gear up gas production for meeting local demand.

It will drill five development wells: Titas-23, 24, 25 and 26 under BGFCL while it would also explore Rasidpur well-8 under SGFCL.

Besides, the government has drilled five wells – Shahbazpur-3 and 4, Begumganj 3, Samutang-6, Sundalpur-2 under BAPEX, according to Petrobangla officials.

The government is hopeful to generate gas around 90mmcfd by 2012 from the wells.

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