Dhaka, Bangladesh (BBN) - Russian state-run gas corporation Gazprom has signed an initial agreement with Petrobangla on Friday to drill 10 onshore gas wells in Bangladesh, officials said.
Gazprom has also agreed to compensate against any blowout during drilling program and provide insurance premiums against the drilling program as per the negotiation.
It also settled pending issues over opening of letter of credits and seepage in gas fields, they added.
Gazprom would be the first foreign company to partner with the state-owned Petrobangla in exploration without a production-sharing contract (PSC) in Bangladesh.
Under the work plan, Gazprom will drill five development wells in state-owned Titas and Rashidpur gas fields and five exploration wells owned by Bangladesh Petroleum Exploration and Production Company Limited (BAPEX).
Bangladesh Gas Fields Limited (BGFL) owned Titas gas field is Bangladesh's second largest gas field, producing around 451 million cubic feet per day (mmcfd) of gas.
Rashidpur, owned by Sylhet Gas Fields Limited (SGFL), produces around 48 mmcfd of gas.
Gazprom will drill five exploration wells in four gas structures -- Begumganj, Shahbazpur, Semutang and Sundalpur -- owned by BAPEX.
It will also mobilize the necessary equipment in Bangladesh for the drilling.
Two technical teams of Petrobangla earlier held a series of meetings with a visiting four-member delegation led by Gazprom’s head of legal department Alexander Nikiforov for finalising the contract document. The team will leave Dhaka on Saturday, a Petrobangla official said.
Petrobangla, the Oil, Gas and Mineral Resources Corporation of the country, hopes to supply around 250-300 million cubic feet of natural gas a day to the national grid by drilling the 10 gas wells.
BBN/SSR/SI-21Jan12-12:17 pm (BST)