Petrobangla, the state-owned company of Bangladesh, has signed a US$ 193.55 million agreement with Gazprom, Russian state-run gas exploration company, for drilling 10 onshore wells.
The agreement signed at a city hotel on April 26 aims to raise gas output by up to 300 million cubic feet per day (mmcfd).
Gazprom Executive Director Yury Skok, SGFL company secretary Mahtab Uddin Bhuiyan, Bapex company secretary Abdus Sabur and BGFL company secretary Rafiqul Alam signed the contracts on behalf of their respective sides.
Under the agreement Gazprom will work as a contractor for the turnkey scheme, and Petrobangla subsidiaries will repay the money to Gazprom for the work upon completion of drilling of each well.
As per contract, the Gazprom will execute the works within 20 months from the date of L/C opening.
The works include construction of drilling pad, camp warehouse, site preparation, rig shifting and commissioning, procurement of drilling meterials, engagement of third party services and also drilling and testing.
Gazprom will compensate Bangladesh under insurance arrangement in case of any losses of natural gas or damage to gas reserves because of any blowout or any other reasons
Petrobangla chairman Hossain Mansur said that they were expecting to add 250 to 300 million cubic feet of gas to the national grid per day upon completion of the drilling of these 10 wells.
The Russian company will have to complete drilling of these wells within 20 months of opening LCs (Letters of Credit), according to the deal documents.
Gazprom agreed to drill the wells on a turnkey basis at a total cost of $193.55 million in October.
Gazprom will be the first foreign company to work with Petrobangla in such a drilling exercise without a production-sharing contract (PSC).
The job involves five wells in Titas gas Field.
Titas, owned by Petrobangla, is Bangladesh’s second largest gas field, producing around 444 mmcfd of gas, while Rashidpur, owned by Sylhet Gas Fields, produces around 48 mmcfd.
Gazprom will also drill five wells in four other gas structures of Bangladesh Petroleum Exploration and Production Company Ltd (Bapex). The fields are Begumganj, Shahbazpur, Semutang and Sundalpur.
Petrobangla offered work on the development of the wells to Gazprom without tender after Polish oil and gas explorer Poszukiwania Nastyi Gazu Krakow backed out after being selected in a competitive tender this year.
Source: e-NewsDesk
