Russia's Gazprom will drill 10 wells to produce gas in Bangladesh under deals signed on Thursday with three state energy companies. Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), - which owns the three state companies, will bear the entire $193.5 million cost of the project, energy officials said.
"This project of drilling of wells in Bangladesh will only be a beginning of the joint work of Gazprom and Petrobangla aiming at achievement of the country's energy security," Yuri Skok, deputy managing director of the Russian company said at the signing ceremony.
"This is an initiative to ease the gas crisis in the country that hampers our efforts to make Bangladesh a middle income country over the next 10 years," said Tawfiq-e-Elahi Chowdhury, energy adviser to Prime Minister Sheikh Hasina.
Chowdhury said currently Bangladesh suffers 500 million cubic feet (mmcf) shortage of gas daily, against the demand of 2,500 mmcf a day.
All the 10 wells belong to three state energy firms under Petrobangla, which will bear the entire cost of the drilling, he said.
The Gazprom official said his company, "having tremendous experience in hydrocarbons exploration and development ...is ready to offer expertise and knowledge for development of new resources".
Under the deal, the Russian firm will provide exploration and development work including seismic studies and extra drilling.
It agreed to pay five percent of the total cost as a performance guarantee and to finish the work within 20 months from the start of the project, Chowdhury said.
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