|
Cairn to invest $128m for offshore drilling in Bay
FE Report
1/23/2006
Scotland-based Cairn Energy PLC has planned to invest US$ 127.50 million by next several years for offshore exploration in the Bay of Bengal subject to approval from its joint venture partners and Petrobangla.
The company will seek approval shortly from the concerned partners and Petrobangla to begin an offshore drilling programme by the end of 2006.
Speaking at a press conference at a local hotel the visiting Chief Executive Officer (CEO) of Cairn Energy PLC Bill Gammel sought potential gas market to prop up Cairn's future investment.
"Bangladesh is a safe place for investment," the Cairn top official said adding, "Investment decisions in energy sector depend on securing the return which requires ensuring of a potential market."
Cairn has so far invested $575 million in its over 10 years of operation in Bangladesh especially in the country's lone offshore Sangu gas field, 48 kilometres into the Bay of Bengal.
Elaborating its future investment plan Cairn officials said, $ 80 million will be required for South Sangu development , $32 million for Sangu gas field development under phase three, and $15.5 million for exploration in areas under Block 16.
Cairn Energy has joint venture arrangement with the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) in Block 5 and Block 10.
Cairn holds 90 per cent stakes in Block 5 and Block 10.
These blocks cover Khulna, Satkhira, Bagerhat and the adjacent portion of the Bay of Bengal, Laxmipur, Noakhali, Bhola, Shahbajpur and the adjacent areas of the Bay of the Bengal.
Cairn and Halliburton Energy Inc were jointly awarded Block 16 for the areas of Feni, greater Chittagong, Kutubdia and the adjacent areas of Bay of Bengal.
The company is also involved in a joint venture with Unocal's successor Chevron in Block 7.
In response to a query the Cairn CEO disowned of its plan to sell its Bangladesh stakes to any company including that of Indian ONGC.
"We have currently no plan to sell Bangladesh stakes," he said.
The Cairn has 5.0 per cent of its total portfolio investment in Bangladesh. The bulk amount of its investment lies with India.
The Cairn CEO acclaimed the high potentiality of onshore gas reserves and the success rate is in every alternative exploration, he added.
But for offshore exploration the success rate is one in every six such efforts, Bill added.
The Cairn CEO also commended the Bangladeshi employees for achieving six million man-hours without any Lost Time Incident (LTI) by its Sangu gas processing plant in Chilimpur.
Cairn's Exploration and Business Director Mike Watts and its Head of Group Communications David Nisbet also spoke on the occasion.
|