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China's state-owned oil- and gas-exploration-company Sinopec is poised to secure a contract to drill five new gas wells on gas-rich Bhola island, as Bangladesh moves to ramp up domestic production of the fuel amid mounting energy demand.
Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), a subsidiary of Petrobangla, has selected the company following competitive bidding, and the official signing is expected soon, a senior Petrobangla official confirmed to The Financial Express on Thursday.
Under the agreement, Sinopec will carry out drilling works worth around Tk 11 billion, to be completed within 600 days of signing.
The project includes four development wells -- Shahbazpur-5, Shahbazpur-7, Bhola North-3, and Bhola North-4 -- and one exploratory well, Shahbazpur North-East-1.
These wells will be drilled to depths of 3,500-3,600 metres, according to project documents.
The Executive Committee of the National Economic Council (ECNEC) has already approved the five-well-drilling initiative as part of the government's broader effort to boost local gas output and meet rising national energy demand.
Upon completion, the number of gas wells drilled in Bhola will rise to 14. So far, nine wells have been drilled - seven by Russia's Gazprom and two by BAPEX.
Meanwhile, Petrobangla plans to step up hydrocarbon exploration on the island, with another 14 wells to be offered to potential contractors in the coming years.
A joint study by Gazprom and BAPEX last year estimated that Bhola could hold up to 5 trillion cubic feet (Tcf) of gas reserves if further exploration is carried out.
A 600 sq km 3D seismic survey from Shahbazpur to Elisha indicated about 2.4 Tcf of reserves, while a 152 km 2D seismic survey at Char Fasson suggested an additional 2.69 Tcf. Gazprom, which has been active in Bangladesh since 2012, has drilled about 20 wells in various gas fields, including several in Bhola.
Currently, Shahbazpur gas field, operated by BAPEX, produces about 73 million cubic feet per day (mmcfd) of gas from four wells.
Despite Bhola's total production potential of around 200 mmcfd, output remains capped at roughly 70 mmcfd due to limited local demand and the absence of a national transmission pipeline connection.
As a result, nearly 130 mmcfd of gas from Bhola's Shahbazpur, Bhola North, and Ilisha fields remains stranded.
This untapped gas could significantly ease the country's reliance on expensive imported liquefied natural gas (LNG), which currently supplements domestic production.
As of October 29, Bangladesh's overall gas supply stood at around 2,752 mmcfd, including 982 mmcfd of regasified LNG, against a demand exceeding 4,000 mmcfd, according to Petrobangla data.
Azizjst@yahoo.com