Santos signs deal with PDB to directly sell gas from Sangu field
Dhaka, June 13 (UNB) - International oil company (IOC) Santos on Wednesday signed a contract with the state-owned Power Development Board (PDB) to sell gas from its offshore Sangu gas field. As per the contract, the PDB will buy per thousand cubic feet of gas at US$ 4.
This is the first time an IOC signed contract to sell its gas to a third party instead of the state-owned hydrocarbon corporation, Petrobangla. Normally, all IOCs operating in Bangladesh are obliged to sell its obtained gas to the Petrobangla which represents the government in hydrocarbon business.
At a function at Bidyut Bhaban in the city, Santos Bangladesh chief John Chamber and PDB secretary Azizul Islam signed the contract on behalf of their respective sides. PDB chairman ASM Alamgir Kabir and and Petrobngla chairman Dr. Hussain Monsur were present.
According to the contract, the Australian IOC will supply 20 million cubic feet of gas per day (MMCFD) to PDB’s Shikalbaha power station. At present, Shikalbaha power station has two generation units, one having 40 MW and another 150 MW capacity. These two units consume about 50 MMCFD gas.
Sangu obtained the right to sell its gas to a third party instead of the Petrobangla through a new agreement which it signed after negotiation prior to its fresh drilling in the Sangu Gas field.
After depletion of gas in the Sangu gas field, Santos, which took over the field two years back from previous operator Cairn Energy, drilled three new wells in the field. But found gas in two wells while one well was abandoned.
This is the first time an IOC signed contract to sell its gas to a third party instead of the state-owned hydrocarbon corporation, Petrobangla. Normally, all IOCs operating in Bangladesh are obliged to sell its obtained gas to the Petrobangla which represents the government in hydrocarbon business.
At a function at Bidyut Bhaban in the city, Santos Bangladesh chief John Chamber and PDB secretary Azizul Islam signed the contract on behalf of their respective sides. PDB chairman ASM Alamgir Kabir and and Petrobngla chairman Dr. Hussain Monsur were present.
According to the contract, the Australian IOC will supply 20 million cubic feet of gas per day (MMCFD) to PDB’s Shikalbaha power station. At present, Shikalbaha power station has two generation units, one having 40 MW and another 150 MW capacity. These two units consume about 50 MMCFD gas.
Sangu obtained the right to sell its gas to a third party instead of the Petrobangla through a new agreement which it signed after negotiation prior to its fresh drilling in the Sangu Gas field.
After depletion of gas in the Sangu gas field, Santos, which took over the field two years back from previous operator Cairn Energy, drilled three new wells in the field. But found gas in two wells while one well was abandoned.
Comments
No Comments on this News
