The Energy and Mineral Resources Division (EMRD) has requested an exemption from conducting mandatory third-party feasibility studies for five new gas well-drilling projects, each costing over Tk50 crore.
In a letter to the Planning Commission, the EMRD cited time constraints and a lack of eligible independent experts in the country as reasons for the appeal.
According to a 2022 Planning Commission circular, investment projects exceeding Tk50 crore require independent feasibility assessments. The directive also applies to some lower-cost projects deemed significant.
The EMRD’s letter, signed by Secretary Mohammad Saiful Islam, emphasized that oil and gas exploration projects are distinct from conventional schemes, involving activities like seismic surveys, drilling, well workovers, and gas production. It noted that no recognized private firms in Bangladesh specialize in conducting feasibility studies for such projects due to a lack of expertise.
The EMRD argued that third-party feasibility studies would be both time-consuming and expensive, requiring 6-12 months and Tk30-40 lakh per project.
At an October 3 meeting chaired by the Energy Adviser, a time-bound action plan to drill 100 wells over the next four years was reviewed. The meeting resolved to appeal to the Planning Commission again, urging reconsideration of the feasibility requirement.
Previously, feasibility studies for ongoing projects were conducted by a technical committee comprising experts from Petrobangla, BAPEX, Bangladesh Gas Fields Company Ltd (BGFCL), and Sylhet Gas Field Ltd (SGFL).
Currently, assessments are facilitated by the state-run Infrastructure Investment Facilitation Company under the Economic Relations Division, with technical data and input provided by Petrobangla and its subsidiaries.
Long-term Energy Development Plan
The EMRD is undertaking extensive oil and gas exploration initiatives to ensure a stable and affordable energy supply for economic growth. Between FY2022-23 and FY2024-25, 18 projects are in progress, aiming to drill 50 new wells or conduct work-over wells.
The government plans to drill 100 wells by FY2028-29 to address the ongoing gas crisis and reduce dependency on imported Liquefied Natural Gas (LNG). Under this plan, 23 new projects, including eight seismic surveys and 15 well-drilling initiatives, are slated for implementation.
Preliminary Development Project Proforma (DPP) documents have been prepared for five of the proposed projects.
Under one project, a development well is planned for drilling at Begumganj-5, accompanied by an exploratory well at Begumganj-6. Another initiative will target the drilling of three exploratory wells, one each at Sundalpur-5, Subarnachar-1, and Noakhali-1.
In a separate effort, fresh drilling will take place Begumganj-7, and Charlakhya-1 and a development well at Semutang-7. Additionally, exploratory wells are slated for Kailashtila-10, Rashidpur-14, and Dupitila-2 under another scheme.
Furthermore, two development wells are proposed for the Titas gas field under an independent plan.
Submitting a DPP for projects exceeding Tk50 crore requires a feasibility study report, project design, and expert suggestions. The EMRD argued that delays in fulfilling these requirements could jeopardize critical energy sector initiatives.
“Domestic gas production is set to decline gradually unless new wells are drilled or urgent workovers are conducted on existing wells to sustain or boost oil and gas output for greater national interest,” the EMRD wrote in its appeal to the Planning Commission.
