BAPEX moves to hunt gas in onshore blocks

http://www.thefinancialexpress-bd.com/more.php?news_id=117927&date=2010-11-21

BAPEX moves to hunt gas in onshore blocks
FHM Humayan Kabir

State-owned petroleum exploration firm BAPEX has taken a massive gas hunt programme in the country’s untapped onshore gas blocks as it is going to appoint foreign contractor for the exploration works, officials said Saturday.

“The seismic survey at the untapped gas blocks in the country’s western region would be started next year. Foreign contractor will conduct seismic survey,” BAPEX Managing Director Murtoza Ahmed Farooq told the FE.

He said, “we have already evaluated bids of foreign firms that participated in the tender invited a few months back.”

Cash-starved Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) would invest more than Tk2.00 billion to explore oil and gas at the block numbers 3, 6, 8 and 11 situated in greater Pabna, Rajshahi, Faridpur, Mymensingh and Manikganj districts.

“We are hopeful of finalising selection of the foreign company to conduct two-dimensional seismic survey in the next month (December),” Mr Farooq said adding the contractor will conduct survey is block numbers 3, 6 and 8.

BAPEX has already conducted survey in block no. 11 and a partial area of block no. 8.

The foreign firm will conduct 2D seismic survey in 3100 line kilometres areas at the untapped blocks in western Bangladesh by December 2012.

“Since we have shortage of equipment and manpower to hunt oil and natural gas, we are appointing a foreign firm as contractor,” the BAPEX managing director said.

He said as the energy demand of Bangladesh has been swelling, which has already walloped the supply chain, the energy division has taken the “first-track programme” to hunt the locations of possible oil and gas reserves.

Attaching highest priority to looking for gas in the untouched onshore areas, the government has decided to provide adequate money for the state-owned energy explorer, producers and suppliers aimed to ensure the country’s long-term energy security.

The caretaker government allocated Tk32 billion in FY2009 for next seven years to mend the impoverished BAPEX, replace more than 20-year old two rigs and arrange adequate experts and tools.

“Since the BAPEX at this moment has had lack of adequate drilling rigs and other tools to start exploration works from next year, we have planned to appoint qualified firms to do the job,” he said.

Amid growing energy crunch in the country, the government has taken initiatives to boost its hydrocarbon exploration and production activities in the untapped areas in the country.

The Petrobangla has said the country’s proven gas reserve will start to deplete in 2012 before drying up completely in 2019 unless new discoveries are made.

Hundreds of factories have failed to go into production due to energy crunch, although the investors have spent hundreds of millions of dollars to build up the facilities.

The untapped block numbers 3 and 6 are situated Pabna, Manikganj and greater Faridpur areas and blocks 8 and 11 are situated in the greater Mymensingh areas.

BAPEX would conduct 2D survey, geophysical and geological studies and delineation of drillable subsurface structure in over 1,000 line kilometres areas in blocks 8 and 11 and 2,100 line kilometres at block numbers 3 and 6.

The country has so far not any gas and oil discovery in the western, northern and southwestern districts, which covered more than half of Bangladesh.

All the existing gas fields are situated in the north-east, eastern, and south-eastern parts of the country.