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Cairn plans increase in Sangu gas production

Staff Correspondent
British oil major Cairn plans to undertake a number of programmes to bump up its gas production in Sangu offshore gas field from the present 140 million cubic feet per day (mmefd) to 200mmcfd by the second quarter next year.
In recent times, the depleting gas field has been facing some problems, which Cairn terms as 'natural', but which now make the company unable to incrcasegas production as per its agreement with Petrobangla.
One of the five wells Cairn had
drilled in the offshore gas field never produced gas, while gas production from one of the remainingfour weUs has declined.
"We plan to rc-perforate one of the four (gas producing) wells and three gas zones. Besides, we are planning to undertake three new gas well drilling and two well workovers," said lan Halstead, country general manager of Cairn Energy Bangladesh, at a press conference yesterday to mark Caim'sre-assumption of Sangu's operatorship from departing oil giant Shell Oil from July 1.
"As per our prediction, Sangu is facing natural depletion. This depletion has taken place in one of the two gas reservoirs of Sangu, which is currently being used as source. We plan to tap the other reservoir. It is a healthy gas field. But, for increased production and stability, we need to work," he told the conference, where ABA Siraj Uddowlah, director. Governmental and Public Affairs of Cairn Energy Bangladesh, also spoke.
While Sangu is the first gas field discovered in 1996 in Block 16 by
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Cairn under a production sharing contract (PSC). But the British company did not strike any other commercial gas field in this block and Block 15.
A significant part of Block 16 and the entire Block 15 have been relinquished as the company did not find anything there in seven years of exploration. However, Cairn says this does not mean these blocks do not have gas prospects.
"We are now talking with the government to take back some parts of Block 16 for further explorations," the Cairn executive said.
"There had been underinvestment in the sector by us and others. There was no investment in Sangu itself for the last three years because of well availability of gas in the country," Halstead noted, adding, "Now there is a sudden rise of demand for gas and we believe the Bangladesh market is now very prospective."
Other than Sangu, Cairn is also working in blocks 10 and 5. In Block 10, where Shahbazpur gas field in Bhola is located, Cairn has com-
pleted 40 percent of its targeted seismic survey. The company projects, the task will be completed by October.
In Block 10, which encompasses the Sundarbans, it will soon begin seismic survey. But this survey will take place well outside the conserved forest area and its buffer zone, Halstead assured.
He also ruled out a press report on selling Sangu gas field to ONGC, an Indian company, "We are proud to be back as operator in Bangladesh. We are not in talks with that company on selling Sangu but have been talking about a deal with it over our concerns in Eastern India."
While Sangu provides about 12 percent of the total gas supply of Bangladesh, Cairn and its joint venture partners -- Haliburton Brown and Roots, and Shell Oil -have invested over $550 million since 1994. Cairn had sold its operatorship of Sangu and blocks 15 and 16 to Shell Oil in 1998.