Govt can drill 2 wells at the same cost as buying 1 spot LNG cargo: Energy Adviser

The government can drill two onshore wells at the same cost as purchasing one cargo of liquefied natural gas (LNG) from the international spot market, Adviser for Power and Energy Dr Muhammad Fouzul Kabir Khan said Thursday.

The government can drill two onshore wells at the same cost as purchasing one cargo of liquefied natural gas (LNG) from the international spot market, Adviser for Power and Energy Dr Muhammad Fouzul Kabir Khan said on Thursday.

Speaking at an impromptu press conference in his office at the Secretariat, the adviser stressed on ramping up oil and gas exploration activities to ease the country’s perennial energy crisis.

Given the current international market scenario, according to sources, the government needs to spend around US$40 million to purchase one spot LNG cargo from the international market.

Dr Khan said that a move has been initiated in order to reduce the country’s dependence on imported LNG, which involves a huge amount of foreign currency.

Talking to newsmen, he spelled out the government’s plan to drill a total of 100 onshore wells between 2025 and 2028.

By 2025, a total of 35 additional gas wells will be drilled. Of these, 11 will be drilled by the state-run Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), and the remaining 24 will be through an open tendering, he added.

The government plans to float an open tender to drill 26 onshore wells in various gas fields soon, he said.

The interim government will not award any contract to any foreign company on a G-to-G basis, Dr Khan said, adding that no contract will be signed without tendering.

Of the 100 wells planned to be drilled between 2025 and 2028, some 69 will be exploratory and development wells, while the remaining 31 will be work-over wells, he said.

Again, of the 69 wells, BAPEX will drill 43 and the remaining 26 will be drilled by inviting contractors through open tendering.

Energy Secretary Md Nurul Alam and Petrobangla Chairman Zanedra Nath Sarker were also present at the press conference.

Azizjst@yahoo.com