Energy Bangla

State-run petroleum exploration and production company BAPEX wants allocation of 10 new onshore blocks leaving seven others open for international oil companies to explore oil and gas.
With the proposed 10 hydrocarbon blocks, BAPEX, a subsidiary of Petrobangla, the Oil, Gas and Mineral Resources Corporation, would own a total of 12 hydrocarbon blocks for exploration and production of natural gas, officials said.
The government has so far allocated only two onshore blocks — 8 and 11 — and a few demarcated or ring-fenced areas for BAPEX, they said.
The proposed blocks for allocation in favour of BAPEX are 4A, 3B, 5, 6A, 6B, 10, 12, 13, 22A and 22B covering partly or entire areas of 30 districts while the blocks numbered 23, 1, 2A, 2B, 3A, 4B and 7 covering 23 districts.
‘We have submitted a proposal in this regard to Petrobangla last month,’ BAPEX managing director Md Atiquzzaman told on Saturday.
BAPEX had already completed seismic surveys in the proposed areas, he said.
When asked, he said that the company had wanted the ownership of the blocks so that it would own the resources and utilise those for building its own capacity in oil and gas exploration.
BAPEX’s proposal to obtain the block allocation came following a government decision of inviting international oil companies for petroleum exploration after reserving jobs for BAPEX according to its capacity, officials said.
Prime minister Sheikh Hasina, also minister in-charge for power, energy and mineral resources, in February 2015 had asked the authorities concerned to take necessary steps in this regard, they said.
The government, in 1997, last time invited international oil companies to explore oil and gas in the onshore blocks and awarded most potential ones to the foreign companies leaving lesser prospective areas for Petrobangla.
BAPEX planned to drill at least 14 exploration wells, eight production wells and renovate eight old wells in the 12 hydrocarbon blocks until 2021, according to the BAPEX proposal which is now being scrutinised by Petrobangla.
The state-run exploration company would also conduct 570 line kilometres geological survey, 9,800 line kilometres two dimensional and 2,940 square kilometres three dimensional seismic surveys on the block areas.
BAPEX is also planning to buy two more new drilling rigs. Using government funds, BAPEX bought three drilling rigs between 2010 and 2014. Procurement of another rig for BAPEX is under process, officials said.
Under another plan, BAPEX is examining proposals of four foreign companies to form a joint-venture to conduct exploration activities in four gas structures — Jaldi, Patia, Kasalong and Sitapahar — in the three districts of Chittagong Hill Tracts, they said.
Now, BAPEX supplies about 132 million cubic feet of natural gas a day, less than five per cent of the total supply, from its seven small gas fields.
Experts and officials said that allocation of comparatively less prospective areas for BAPEX led to discovery of small reserves of natural gas.
BAPEX also provides exploration and drilling services to the two state-run gas production companies as well two other international companies.