Prospects of huge gas reserves in deep sea

Bangladesh has discovered the prospects of a big deep-sea gas reserve after the resolution of its maritime boundary dispute with Myanmar and India. A 2D seismic survey along the Myanmar border has revealed that Bangladesh could have a minimum of five prospective structures in the Bay of Bengal in Block D-12. The operator of the block, the South Korean conglomerate Daewoo Corporation, yesterday officially informed Petrobangla about the finding and expressed its interest in doing a 3D seismic survey in the block, which is located along the Myanmar gas block-AD 7.

Daewoo and its Australian partner, Woodside Energy, also operate Myanmar’s AD-7, which was discovered in 2016. “This raises very high hopes for the nation as we see a good prospect in the block. But until we hit the gas nobody can tell you anything confirmatory,” said a Petrobangla official.

In a presentation, Daewoo said it surveyed 1,580 sq km in the deep sea early this year. The analysis of the survey results confirmed the existence of five structures that could be moderate gas fields. However, nothing is fixed until the process is completed. “I’m really hopeful about prospects in the Bay of Bengal. The five structures were identified along Myanmar’s three gas fields having 8 TCF of gas,” Prof. Badrul Imam, an energy expert, told The Independent yesterday.

“Though there is a border between Bangladesh and Myanmar, the sea basin is the same. So, it’s logical to remain hopeful about the prospects,” he added. Daewoo told Petrobangla that as part of the exploration process, it would carry out a 3D survey in 2,000 sq km in Block 12 in November. If the results are found to be positive, it would start drilling in the deep sea.

In March 2017, the government and Petrobangla signed a production-sharing contract with the POSCO Daewoo Corporation of South Korea without going through the tendering process for oil and gas exploration in Block 12. Daewoo is allowed for five

years to complete initial exploration tasks including the drilling of an exploration well in the deep sea.

The government awarded a contract to Daewoo under the Speedy Supply of Power and Energy (Special Provisions) Act 2010 after a bidding process was postponed, as the lone bidder, Norwegian Statoil, demanded commercial benefits beyond the bid it had submitted under the Model Production Sharing Contract 2012.

Daewoo will be paid USD 6.50 for each thousand cubic feet of natural gas it will own under the PSC, according to the contract.

It would be allowed to sell natural gas and other petroleum resources to a third party in the country or outside at negotiated prices if Petrobangla refuses to buy the produce.

Under the model PSC 2012, India’s ONGC Videsh is now carrying out seismic surveys in shallow sea blocks 4 and 9, while a joint venture of KrisEnergy and Santos is carrying out seismic surveys in shallow sea block 11. But only Daewoo is continuing exploration activities in the deep sea.

On 14 March, 2012, in a historic victory at the UN maritime tribunal, Bangladesh won the territorial and economic rights to vast Bay of Bengal resources by virtue of a verdict of the International Tribunal for Law of the Seas (ITLOS). After the win, Bangladesh foresees huge prospects in the sea.

To meet domestic demand, Bangladesh is importing costly LNG from the international market. If the country finds huge reserves in the Bay of Bengal, it could save a huge amount of money.

Source: The Independent

To see the original article click link here

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.