UNB, Dhaka
Chevron will conduct a reevaluation of the Bibiyana gas field to delineate its latest reserve position.
According to state-owned hydrocarbon corporation Petrobangla, an approval will be given in this regard to the US-based international oil company (IOC) within this week.
The move for reevaluation came amid a debate over the level of gas extraction from the country’s second largest gas field, where reserve was initially estimated at about 2.4 trillion cubic feet (TCF) after the discovery of the field in 2000.
A group of energy experts in Petrobangla is opposed to gas production of more than 500 million cubic feet a day (MMCFD) arguing that this might lead to an early death to the gas field.
On the other hand, another group of Petrobangla experts favour increasing the production level to more than 500 MMCFD.
Petrobangla director Muktadir Ali, however, said the move to reevaluate the reserve undertaken as part of the gas purchase and sales agreement (GPSA) signed with the IOC.
He mentioned that there is a provision in the GPSA that after commissioning of gas production in the field, a reevaluation has to be conducted every two years to update the reserve position.
“The joint management committee of the field recently decided to go for a reevaluation and we’re likely to give the approval to the move within this week,” Muktadir Ali told UNB.
The gas production at the Bibiyana gas field began in February 2007 with a daily production of 200 MMCFD.
There was a plan that production would be enhanced to 600 MMCFD within few years to meet the growing demand.
But with two years, when the production level was increased to 500 MMCFD to meet the gas demand, some experts started opposing the production enhancement idea.
Muktadir Ali said, at present, the gas production from the field is between 470-480 MMCFD.
Sources said that after the commissioning of gas production at the Bibiyana gas field, a total of 12 wells were drilled so far for production and exploration purpose.
They said a reevaluation now would give a better picture of the gas reserve at the field and would ultimately help in taking a proper decision about the production increase.
Chevron Bangladesh President Steve Wilson said his company is working closely with Petrobangla to increase production at Bibiyana field in order to safely handle additional gas production for the nation in these challenging, energy-starved times.
He said: “Bibiyana has proven to be one of Bangladesh’s largest and most robust fields, capable of safely producing beyond original estimates. In addition, both Petrobangla and the Ministry of Energy regularly monitor and comment on daily production levels at all three gas fields out of which Chevron produces.”
The country has been facing huge gas shortage to meet the growing demand in the power plants, fertilizer factories and also in industries. But the government has very limited option to enhance the gas production before 2011.
Sources said if the reevaluation of the Bibiyana field shows a better reserve position, the government will have a good option to enhance the production to meet the growing gas demand.
Courtesy: nation.ittefaq.com
