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Experts trace reasons for HC exploration delay

Indifference, liking for ad-hoc solution blamed

Representational photo shows a gas rig operated by Diamond Resources and contracted to Cairn Energy plc, about 15 miles off Chittagong in the Bay of Bengal. Courtesy: Jiri Rezac
Representational photo shows a gas rig operated by Diamond Resources and contracted to Cairn Energy plc, about 15 miles off Chittagong in the Bay of Bengal. Courtesy: Jiri Rezac

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The government's protracted 'indifference' and propensity to look for 'ad-hoc' solution to the country's energy crisis have been delaying the domestic hydrocarbon (HC) exploration, energy experts said.

The country passed the leanest decade of hydrocarbon discovery in its history as the consequence of 'lower than expected' exploration, they also said.

"It is unfortunate that the government is yet to initiate multi-client non-exclusive seismic survey in the Bay of Bengal to identify HC potentials in offshore areas. But around five years have passed since we resolved maritime boundary dispute with the neighbouring countries," said energy expert Professor Mohammad Tamim.

The survey is aimed at creating a database on the potentials of hydrocarbon reserve in the country's offshore areas.

The state-run Petrobangla had floated tender twice in 2015 to select an international firm or a joint venture (JV) to carry out the survey.

A Norwegian-US firm was selected by the bid evaluation committee on both the occasions to carry out the planned two-dimensional (2D) seismic survey, but the JV was not finally awarded the job.

"It's a sheer negligence on the part of the government," said Mr Tamim, who is currently serving as the pro-vice chancellor of Brac University.

The international oil companies (IOCs) are not showing any notable interest in exploring the country's offshore areas due to absence of adequate data, said Mr Tamim, who looked into the energy issues as a special assistant to the chief adviser of previous caretaker government.

"The government is rather busy in importing expensive liquefied natural gas (LNG) to resolve the country's energy crisis instead of carrying out HC exploration locally," he added.

"It seems that a vested quarter is acting behind the scene and delaying domestic exploration," said Professor Badrul Imam of Department of Geology of Dhaka University.

As a consequence, the government fixed the topmost priority on building LNG import terminal and importing LNG over the past several years, putting it into fast-track route and finally succeeded, he noted.

Had the government put more focus on exploration, there could have been significant output, he added.

Energy adviser of the Consumers Association of Bangladesh (CAB) Professor M Shamsul Alam alleged that the country's energy sector has not been running 'independently.'

A 'dodgy' quarter has been active in this sector. Consumers are set to pay higher as its consequence, he added.

Petrobangla had floated offshore bidding rounds without any survey in 2008, 2012 and 2016. But only a few IOCs took part in the bidding and subsequently inked production sharing contracts (PSCs) in 2008 and 2012.

Officials concerned said the country could discover only four onshore gas-fields - Bhola-North, Rupganj, Srikail and Sundalpur - during 11 years from 2007 to 2018 (July), having the total recoverable reserve of around 800 billion cubic feet (Bcf).

Natural gas discovery during the previous decade, from 1997 to 2006, was around 6.18 trillion cubic feet (Tcf) from two onshore gas-fields -- Moulvibazar and Bibiyana, which is almost eight times the discovery of the immediate-past decade, according to the Petrobangla statistics.

During the decade 1987-1996, the country discovered an accumulated natural gas reserve of 3.15 Tcf from six onshore gas-fields -- Fenchuganj, Saldanadi, Shahbazpur, Jalalabad, Meghna and Narsingdi -- and one offshore gas-field -- Sangu.

The country could discover a total of 493.8 Bcf natural gas during the decade 1977-1986, when five onshore gas-fields - Beanibazar, Begumganj, Kutubdia, Kamta and Feni - were discovered, the Petrobangla statistics revealed.

The total natural gas discovery during the decade 1967-1976, which included the period of the then East Pakistan and independent Bangladesh, was 1.65 Tcf from two onshore gas-fields - Bakhrabad and Semutang.

The highest volume of natural gas reserve to the tune of 14.66 Tcf was discovered during the decade ranging from 1957 to 1966 from five onshore gas-fields - Titas, Habiganj, Kailashtila, Rashidpur and Chhatak.

Before 1957, only one gas-field - Sylhet, also named as Haripur - was discovered in 1955 with a recoverable natural gas reserve of 318.9 Bcf. Haripur was the first gas-field discovered in the country.

Bangladesh's overall natural gas output is currently hovering over 3,100 million cubic feet per day (mmcfd), of which around 500 mmcfd are re-gasified imported LNG.

The country's existing natural gas demand is around 4,000 mmcfd, according to the Petrobangla.

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