Singapore-based Kris Energy will carry out drilling operations in two onshore wells in Bangora field, located under block 9 in Comilla district, a senior Petrobangla official told the FE.
Petrobangla has already approved the work programmes of KrisEnergy and its partners to initiate drilling of two onshore wells, he said.
Once completed, natural gas production from Bangora gas field will be consolidated at the current level of around 110 million cubic feet per day (mmcfd), said the official.
Otherwise, natural gas production from these wells might decrease, he added.
Bangora gas field has currently four producing gas wells having total production capacity of 110 mmcfd, which is 4.15 per cent of the country’s overall natural gas output of around 2,645 mmcfd, as on March 30, 2015, Petrobangla data reveals.
Gas produced from Bangora is being supplied to the country’s gas-starved port city of Chittagong.
The block 9 covers 1,770 square kilometres and is located some 100 kilometres east of Dhaka.
Bangora gas field commenced production in 2006 and lies in a gas province with substantial gas infrastructure.
KrisEnergy became the operator of block 9 after purchasing stakes from UK-based Tullow Oil at US$ 42.35 million.
The Singapore-based firm will hold a 30 per cent working interest of the onshore Bangora field.
The other partners in block 9 are Niko Exploration Ltd (Block 9) with a 60 per cent working interest and Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), with 10 per cent.
Apart from block 9, KrisEnergy has a joint venture (JV) with Australian Santos over a shallow water block SS-11 in Bangladesh for oil and gas exploration in the Bay of Bengal.
The JV has initiated two-dimensional (2D) seismic survey this week in offshore block SS-11 in January this year.
The exercise will be carried out on behalf of the joint venture by French firm CGG at a cost of around $ 9.76 million.
The shallow water block – SS-11 is highly potential, as it is close to Myanmar’s territorial water, where the neighbouring country discovered huge natural gas reserves.
The block covers an area of 4,475 sq km in the Bay of Bengal. The majority of the block lies in shallow waters up to 200 metres with the furthest southwest portion extending into water depths up to 1,500 metres.
KrisEnergy holds a 45 per cent non-operated working interest in the exploration block. Santos is the operator with 45 per cent and BAPEX holds 10 per cent.
The Santos-Kris JV has committed to drill an exploration well, conduct 1,876 line kilometre 2D seismic survey and 300 sq km 3D survey, and offered a bank guarantee of $15 million, for the initial five years of exploration.
The JV bidder will require investing around $30-32 million to carry out its work plan under the production sharing contract (PSC) during the initial years.
The contract period for exploration will be eight years in total. The contractor will be allowed to operate and sell oil and gas for 20 years from an oil-field and 25 years from a gas-field.