OIl & Gas updates

Updated: January 16, 2018

block-map-2016-final-on-10-aug-2016
Bangladesh Block Map

 

Bangladesh Petroleum Exploration & Development Opportunities:

Drilling Services:

BAPEX (Bangladesh Petroleum Exploration Company) will be drilling 108 wells by 2022. In 2018, they will drill 28 wells using 4 of their own and hired rigs through international contractors. BAPEX do not have their own facility to render 3rd party services such as:

  • Well logging
  • DST – Drill stem test
  • Well Completion (Subsurface & Surface)
  • Geo Logging
  • Coring
  • Well Simulation

Currently only 2 companies, Schlumberger(Singapore based) & Halliburton(India based) are providing these services, but with overwhelming drilling activities, scope for others to participate is very feasible.

Rig Maintenance:

BAPEX also maintains a fleet of drilling rigs & crew:

Deep Drilling:
  • 2 X Chinese Hong Hua rigs mostly with U.S accessories i.e, top drive, rotary table, mud pumps & engines.
  • 1 X Ideco 1700, dresser, France
  • 1 X IPS – Gardner Denver, USA
Work Over:
  • 1 X Hong Hua, China
  • 1 X P-80, Romania
With the extensive drilling program, BAPEX will need to refurbish and maintain their existing rigs.

Our Bangladesh office Upstream & Downstream Services can monitor all the upcoming opportunities and keep our principal informed in advance.

Bangladesh Off-shore:
OVL India – Operating in blocks SS-04 & SS-09
Santos Australia –  Operating in Block SS-04 (Ring fenced area) – drilling at Magnama

Bangladesh On-shore: 
BAPEX (Bangladesh Petroleum Exploration Company)
KRIS ENERGY – Operating in On-shore block # 09, production from Bangora Gas FieldChevron – Production from On-shore blocks 13 & 14

 

LNG: 
Two major FSRU terminals are being built by Excellerate Energy USA & Summit Energy BD in the off-shore Moheshkhali island. The plants will be operational in Q1/2018 & Q4/2018 respectively. Petrobangla has signed a long term purchase agreement with Ras Gas, Qatar and also looking for purchase opportunity from spot market. The initial combined capacity of the plants are planned to be 1000 mmcfd.

 

Recent Developments: 

  • Petrobangla: In preparation of an up coming bid round Petrobangla is planning to acquire new seismic data (Multi-Client) through hiring of survey vessels. Various companies including GAZPROM, Russia is showing interest.
  • Santos Australia: Block SS-11. Santos  has sent RFP documents to six short listed companies for acquisition of 3-D seismic survey in their own block SS-11 & Daewoo’s 3-D acquisition program in block DS-12 jointly. Santos will acquire 300-500sqkm data and possibly going upto 1000 sqkm. Daewoo will acquire 1000sqkm of data. Acquisition period: March 2018 – May 2018. Bid submission deadline is 17 January 2018.
  • OVL India: Blocks SS-04 & SS-09. Submitted drilling proposal to Petrobangla for it’s 1st exploration well, Kanchana # 1 on Moheshkhali island, approved by Petrobangla.  OVL is now negotiating with SINOPEC, China to finalise a drilling contract.
  • Posco Daewoo Korea: Block DS-12 .Completed acquisition of 2-D seismic o through BGP, China. Based on processing and interpretation results, they intend to acquire 300sqkm 3-D seismic over the block in December 2017. UDS/Advent Services is working closely with Posco Daewoo providing assistance/services. Posco Daewoo has authorised Santos AU to carry out the program for their 1000sqkm 3-D seismic acquisition.
  • BAPEX: 
    • Planned Drillings: SOCAR LLC, Azerbaijan has been awarded a contract to drill 3 onshore wells. They plan to mobilise rigs by February 2018. SOCAR is procuring the rig from Drillmec, Italy.
    • Petrobangla will make new announcement to hire drilling contractors to accomplish their 108 well drilling program.
    • BAPEX signed a separate contract with GAZPROM to drill 2 appraisal+development wells # 5 & 6 at Shahbazpur Gas Field. Drilling of well # 5 was completed as a gas producer from the Shahbazpur Gas Field. Drilling of well # 6 has also been completed as a new gas discovery and known as Bhola North. 
    • BAPEX is also planning to drill 2 on-shore wells using their own rig and crew.
    • Seismic Acquisition: BAPEX is planning to acquire 3000lkm 2-D seismic survey using their own crew in on-shore blocks # 8 & 11.
  • Chevron: Blocks 13 & 14 development area. 
  • Kris Energy: Onshore Block # 9 – Recently completed drilling of Bangora # 6 development well and started flowing gas. Reported sale of their asset to Keppel Holdings Singapore.
  • WoodSide Energy Limited, Australia: Has shown interest in Bangladesh off-shore activities in the deep sea blocks. Their delegation have made a presentation to Petrobangla on 24th August 2017. They will submit a formal proposal soon.

Bangladesh Gas Production: From 22 gas fields, production is on decline and would require installation of well-head compressors in phases. Recently in this respect, ADB has signed a contract with BGFCL(Bangladesh Gas Fields Company Limited) for purchase of 7 well-head compressors. BGFCL has notified for EOI from interested companies to provide consultancy services which will be finalised end February 2017. This will be a long-term consultancy service which will not only prepare the engineering design and tender document but will also monitor the whole process of installation. However, consultancy firm will not be allowed to participate in the bidding of the purchase of the compressors.

  • We can facilitate any prospective company willing to participate in the consultancy tender.
  • We can also facilitate any prospective company willing to participate in bidding of the purchase of the compressors

LNG: Due to declining gas production in Bangladesh (Currently 3000 mmcfd) and increasing annual demand (8000 mmcfd by 2040) GoB (Government of Bangladesh) has embarked upon setting up of both off & on shore LNG plants to meet increasing demands. Currently:

  • Excelerate USA has already signed a contract with PB (Petrobangla) and they expect to deliver fast gas in the system by 2018.
  • Others on-queue are Petronet India, Summit BD & GE USA JV, China Huanquiu China,  Global Energy Malaysia & Petronas Malaysia JV – all have already signed MOU with GoB.
  • We can for our client, monitor the requirement for LNG related services in off-shore pipeline development.

Seismic Survey: PB/BAPEX will relegate 6000 lkm 2-d seismic survey for their upcoming drilling program in the next 3 years. 3000 lkm will be obtained through hiring international contractors and the rest by BAPEX’s own crew.

  • We can facilitate any interested contractors.
  • Facilitate sale of explosive (Through international tender)

Other Requirements: Bangladesh has more than 1000 lkm of high pressure gas transmission line and more than 18,000 distribution lines. More & more lines are constructed each year. Hence, the requirement of various high pressure valves is always there.

BAPEX also periodically purchases various drilling equipment and procure third party services through outsourcing.

  • We can assist potential principal in participating in tenders to sell
    • High pressure valves
    • drill pipes
    • Xmas tree
    • BOP stacks etc.