Dhaka, Bangladesh (BBN) - Russian Gazprom has signed deals with three subsidiary companies of state-owned Petrobangla to drill 10 development wells at six onshore gas fields in Bangladesh at a cost of US$193.50 million.
Gazprom Executive Director Yury Skok, Sylhet Gas Fields Ltd (SGFL) company secretary Mahtab Uddin Bhuiyan, Bapex's company secretary Abdus Sabur and Bangladesh Gas Fields Company Ltd (BGFCL) company secretary Rafiqul Alam signed the contracts on behalf of their respective sides.
The deal signing ceremony was held in a city hotel on Thursday where Finance Minister Abul Maal Abdul Muhith was the chief guest.
Under the deals, the Russian firm will drill 10 onshore wells in six discovered gas fields of three Petrobangla's subsidiaries -- BGFCL, SGFL and Bangladesh Petroleum Exploration and Production Company Ltd (Bapex).
As per the contract, the Gazprom will execute the contract within 20 months from the date of opening letters of credit LCs.
The present gas supply in the country is around 2,000mmcf a day against the demand for 2,500mmcf. The supply is likely to increase by 50mmcf from April 30 after launching of a gas compressor station in Sylhet.
This is the first time that any international oil company is engaged in drilling gas wells under a commercial contract. Gazprom is the first foreign company to partner with Petrobangla in exploration without a production-sharing contract.
BBN/SSR/AD-27Apr12-12:30 pm (BST)
