The government took the initiative to drill 100 wells after coming to power to increase domestic gas production. These wells are to be drilled by December 2028, according to its plan. But the government has approved drilling only three wells so far, even though six months have already passed. Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) is expected to drill all three wells.
The slow pace of approving well-drilling projects has raised questions about whether the target can be achieved within the stipulated timeframe. Energy experts say there are doubts over whether the remaining 97 wells can realistically be drilled in less than two years. Earlier, a project to drill 50 wells undertaken during the Awami League government also failed to meet its scheduled implementation deadline.
Petrobangla officials, however, said the earlier plan to drill 100 wells was being revised. Under the revised plan, the government is considering setting a target of drilling a total of 120 wells by 2031, although no formal plan or project has yet been finalised in this regard.
Since the BNP-led government took office, seven meetings of the Executive Committee of the National Economic Council (ECNEC) have been held, approving a total of 59 projects at these meetings. Of these, only one project has been approved to increase domestic gas exploration and production.
At the first ECNEC meeting of the current fiscal year and the sixth meeting under the present government, a project to drill three wells was approved. Proposed by BAPEX, the project will involve drilling Begumganj-5 and Begumganj-6 wells in Noakhali and Sunetra-2 in Sunamganj. The ECNEC meeting held on July 22 approved the project at a cost of around BDT 7.29 billion.
The Awami League government had earlier taken an initiative in 2022 to drill 50 wells to increase domestic gas production. The project aimed to add 650 million cubic feet of gas per day to the national grid by 2025 through the drilling of these wells. But all the wells under the project could not be drilled within the stipulated timeframe. The targeted volume of gas could not be added to the national gas grid. According to Petrobangla data, 30 of the 50 wells have been drilled so far. The remaining 20 wells are now also being incorporated into the government’s new plan.
When contacted, two Petrobangla officials told Bonik Barta on condition of anonymity, “Adequate rigs were needed to meet the well-drilling target, but BAPEX doesn’t have enough. A lack of funds and bureaucratic complications also became major obstacles. Well drilling was hampered by various factors, including global geopolitical issues. The plan now is to drill 120 wells — 20 from the previous plan and 100 new ones. All these wells are to be drilled by around 2031. This is because drilling such a large number of wells requires substantial funding, necessary clearances and various other approvals.”
According to Petrobangla’s plan, there are four years left to drill these wells if they are to be completed by 2031, meaning around 30 wells would have to be drilled each year. Petrobangla plans to use domestic rigs, rented rigs from foreign companies and international companies contracted to carry out the work to drill the wells.
The plan to drill 100 wells to increase domestic gas supplies dates back to the previous government. Energy experts and sector officials said the current government has redesigned the plan. Under the earlier plan, 100 wells were to be drilled to increase gas supplies to the national grid, including 69 exploration wells and workovers of 31 existing wells. BAPEX had planned to drill 68 of these wells, aiming to add another 1.35 billion cubic feet of gas per day to the national grid by 2028. The remaining 32 wells were to be drilled by gas exploration and production companies Bangladesh Gas Fields Company Ltd (BGFCL) and Sylhet Gas Fields Ltd (SGFL).
The estimated cost of drilling the 100 wells was BDT 190.5 billion. Of this, BDT 133.28 billion was to come from government funds, while BDT 57.22 billion was to be financed through the Gas Development Fund (GDF) and the companies’ own funds. But the financing structure, annual well-drilling plan and timeframe for the project have since been revised.
Domestic gas production in Bangladesh is declining steadily. To make up for the shortfall, the government is importing LNG from abroad alongside drilling new wells. It has also taken initiatives to sign long-term LNG supply agreements and build floating terminals for liquefied natural gas (LNG). In addition, it has invited bids for offshore gas exploration. But sector stakeholders believe that, to implement these plans, the government must first step up exploration and well-drilling projects aimed at increasing domestic gas production.