Sunday, March 24, 2013

Brief History about Gas Industries of Bangladesh


The search for oil and gas in the country began in the later part of the 19th century, through some isolated geological mapping. The first serious attempt to find oil and gas was undertaken in Sitakund in 1908 by the Indian Petroleum Prospecting Company. During 1923−1932 Burmah Oil Company drilled two shallow wells in Patharia. A total of six exploratory wells were drilled. There was, however, no discovery and the World War II disrupted further activity.

The promulgation of the Pakistan Petroleum Act in 1948 infused the interest of international oil companies (IOCs) in oil and gas exploration in what was then East Pakistan. The Standard Vacuum Oil Company of the US, Pakistan Petroleum Ltd., and Pakistan Shell Oil Company took up concessions during the early 1950s and carried out exploration till the end of the 1960s. The first gas discovery was made in Haripur in 1955 followed by Chhattack in 1959. Five gas fields, Titas, Habiganj, Rashidpur, Kailashtila, and Bakhrabad, which appeared as major producers in the country, were discovered during this period.

In 1961 the Oil and Gas Development Corporation was established in the national sector and the root of exploration for oil and gas was set up in the country. The company discovered the Semutang gas field. Between 1947 and 1971 a total of 28 exploratory wells were drilled and eight gas fields were discovered.

After the liberation of Bangladesh, exploration activities gathered momentum both by national and international companies. Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) continued its exploration efforts while the Bangladesh Petroleum Act was enacted in 1974 to facilitate participation of IOCs under production sharing contract blocks (PSCs). Ashland, ARCO, BODC (Japex), Union Oil, Canadian Superior Oil and Ina Naftaplin, under PSCs, carried out gravity, magnetic and seismic surveys (about 32,000 km) and drilled seven wells. However, only Union Oil Company discovered an offshore gas field, Kutubdia, in 1977. This phase of PSCs ended with relinquishments by 1978.

The 1980s saw accelerated exploration activities by Petrobangla, which drilled 12 exploration wells and discovered seven gas fields in Begumganj, Beanibazar, Feni, Fenchuganj, Kamta, Marichakandi (Meghna), and Belabo (Narshingdi). Meanwhile, a new milestone was achieved when the company discovered the first commercial oil pool in Sylhet on 23 December 1986. From 1989, BAPEX has continued exploration and drilled three exploratory wells, discovering gas in Shahbazpur and Saldanadi.

In 1988 Scimitar Exploration was awarded what is now block 13 in the Burma basin. However, they failed to prove the extent of the oil find at Sylhet structure while on the other hand, discovered the Jalalabad gas field. In the early 1990s, eight blocks were awarded to four companies under PSCs. In total 11 exploration wells were drilled and three gas fields were discovered. Two gas fields, previously discovered Jalalabad and newly discovered offshore Sangu, were developed under PSCs and are currently in production.

Between 1972 and the present, a total of 42 exploratory wells have been drilled by the national and international companies, which resulted in the discovery of 16 gas fields. Since the drilling of the first exploration well in 1908 a total of 142 wells have been drilled in Bangladesh.

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