To meet the country’s growing energy demand and reduce reliance on imported fuel, the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) has undertaken an initiative to drill three more gas wells. The project, estimated to cost around BDT 7.29 billion, involves drilling the Begumganj-5 and Begumganj-6 wells in Noakhali, along with the Sunetra-2 well in Sunamganj. The Executive Committee of the National Economic Council (ECNEC) on Wednesday approved the project at the meeting, chaired by Prime Minister and ECNEC Chairperson Tarique Rahman.
The project includes drilling the three wells, land development, well testing, construction of the necessary surface facilities and development of infrastructure required for gas production, according to the Planning Commission and related sources. BAPEX will implement the project, while Infrastructure Investment Facilitation Company (IIFC) conducted its feasibility study.
The total project cost has been estimated at around BDT 7.29 billion, of which the government (GoB) will finance BDT 5.83 billion and BDT 1.46 billion from BAPEX’s own funds.
The project aims to meet energy demand and increase capacity. The Begumganj-3 and Begumganj-4 wells currently produce around 11.5 million cubic feet of gas per day, indicating further production potential in the area. If the three new wells are successfully drilled, they are expected to add approximately 35 million standard cubic feet per day (MMSCFD) of gas to the national grid.
The estimated recoverable reserve from the new wells is around 711 billion cubic feet (BCF), with a market value of approximately BDT 1.2 trillion. The additional gas supply is also expected to contribute to the country’s energy security. The project has been given special priority as part of the current government’s election manifesto.
Planning Commission officials said the government is currently placing greater emphasis on projects linked to its election manifesto. BAPEX has long been engaged in gas exploration and production across different parts of the country. There is strong potential for additional gas discoveries in Begumganj, prompting the company to undertake the new drilling programme, they noted.
The officials added that expanding domestic gas production through locally financed projects is economically beneficial for meeting Bangladesh’s energy demand. But during the Project Evaluation Committee (PEC) meeting, questions were raised regarding whether BAPEX possesses the necessary organisational capacity to implement the project independently.
Three appraisal and exploration wells under the project are expected to play a significant role in strengthening the country’s energy security, according to officials concerned. The project includes the acquisition and development of 10.61 acres of land. It also covers the construction of rig foundations for the Begumganj-5 and Begumganj-6 wells, the procurement of local and imported equipment and materials, and well testing and completion, subject to the discovery of commercially viable gas. Considering its importance in enhancing Bangladesh’s energy security, the project has received ECNEC approval.
Speaking to Bonik Barta, Mohammad Mozammel Haque, deputy general manager of BAPEX’s Wireline Logging Services Division and the project director, said, “The project has been undertaken to meet the country’s energy demand and strengthen domestic capacity. Once implemented, it will add 35 MMSCFD of gas to the national grid. Since gas supply still falls short of demand, the project will make a significant contribution.”
Despite the new drilling initiative, the Planning Commission has raised concerns over BAPEX’s institutional capacity. Recommendations from the Project Evaluation Committee (PEC) noted that BAPEX faces institutional capacity constraints in implementing its ongoing and post-completion projects. The committee also recommended reducing expenditure on computers, furniture, transport and several other cost items in projects awaiting approval.
Energy experts have likewise stressed the need to strengthen BAPEX’s institutional capacity. They said that while the initiative to drill new wells is a positive step, it must be complemented by accelerated seismic surveys, greater use of modern exploration technologies and increased drilling at deeper geological formations. They also emphasised the need to expedite exploration activities in the offshore blocks of the Bay of Bengal, arguing that reliance on onshore gas fields alone will not be sufficient to ensure Bangladesh’s long-term energy security.