Bangladesh to drill offshore wells near Myanmar border

10 April 2019, Week 14, Issue 670

Two offshore exploration wells are set to be drilled near Bangladesh’s maritime border with Myanmar, according to officials from state-owned Petrobangla.

Former Petrobangla director for PSCs Mahbub Sarwar told local daily The Independent that Australia’s Santos would drill the Shimanto and Palongki wells at Block SS-11 in the Bay of Bengal. The block, he said, lies near to Myanmar’s A-6 and AD-7 blocks – both of which have proven reserves.

Last year, Total and Woodside Petroleum encountered 40 metres of net gas pay from the Shwe Yee Htun-2 well in Myanmar’s Block A6, which is said to contain around 2-3 tcf (56.64-84.96 bcm) of gas, while Woodside’s Thalin-1A exploration well in Block AD-7 found 62 metres of net gas pay in 2016. Total resources evaluated in the area are around 8 tcf (226.56 bcm).

While Sarwar told The Independent that both wells would be drilled before the end of 2019, a different, unnamed Petrobangla official said Shimanto would be drilled this year and Palongki in 2020.

Santos has carried out two separate seismic surveys in the Bay of Bengal with Singaporean joint venture partner KrisEnergy aimed at assessing hydrocarbon potential. A 3,200 line km 2D seismic survey in 2017 identified seven prospects in the area, which were then subject to further evaluation by a 3D seismic survey of Block SS-11 in 2018.

Bangladesh’s natural gas production stood at 2.6 bcf (73.63 mcm) per day in 2017, according to the BP Statistical Review of World Energy 2018. Demand is widely estimated to amount to around 4 bcf (113.28 mcm) per day.

The country’s output comes solely from onshore gas fields. It fills the shortfall between production and demand with imports, chiefly of LNG, having received its first shipment of the super-chilled gas in April 2018.

However, inadequate pipeline capacity means that some areas of the country, including parts of the capital, regularly face gas shortages. These constraints will require more infrastructure to be built before offshore production can ensure proper gas supply.

 

Edited by

Andrew Kemp

Editor

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