Annual Report PETROBANGLA2018 PETROBANGLA PETROBANGLA Petrocentre, 3 Kawran Bazar Commercial Area Dhaka-1215, Bangladesh, GPO Box No-849 Tel : PABX : 9121010–16, 9121035–41 Fax : 880–2–9120224 E-mail : [email protected] Website : www.petrobangla.org.bd 04 Message of the Adviser (Minister) to the Hon’ble Prime Minister 05 Message of the Hon’ble State Minister, MoPEMR 06 Message of the Senior Secretary, EMRD 07 Introduction by Chairman, Petrobangla 10 Board of Directors (Incumbent) Contents 11 Past and Present Chairmen of Petrobangla 12 The Genesis and Mandate 14 Petrobangla and the Government 16 A Brief History of Oil, Gas and Mineral Industry in Bangladesh 19 Activities of Petrobangla 42 Companies of Petrobangla 62 Development Programmes for FY 2017-18 67 Future Programmes 68 Plan for Production Augmentation 69 Data Sheets 77 Statement of Profit or Loss and Other Comprehensive Income 78 Statement of Financial Position 79 Statement of Cash Flows 02 Annual Report 2018 PETROBANGLA Our To provide energy for sustainable economic growth and maintain energy security Vision of the country • To enhance exploration and exploitation of natural gas Our • To provide indigenous Mission primary energy to all areas and all socio economic groups • To diversify indigenous energy resources • To develop coal resources as an alternative source of energy • To promote CNG, LNG and LPG to minimize gas demand and supply gap as well as to improve environment • To contribute towards environmental conservation of the country • To promote efficient use of gas with a view to ensuring energy security for the future Annual Report 2018 03 Tawfiq-e-Elahi Chowdhury, BB, PhD Adviser (Minister) to the Hon’ble Prime Minister Power, Energy & Mineral Resources Affairs Govt. of the People's Republic of Bangladesh. Father of the Nation, Bangabandhu Sheikh among the consumers of the country for Mujibur Rahman desired to ensure the responsible use of energy to ensure energy energy security of independent Bangladesh. security. He bought five gas fields from Shell Oil at a nominal price on 9th August, 1975. The strong foundation of our energy supply has been established based on these gas Joy Bangla, Joy Bangabandhu fields. In the course of time, under the leadership of Hon'ble Prime Minister Sheikh Long Live Bangladesh Hasina with steady economic development, Bangladesh has already been recognized as Message a role model for developing countries. I am happy to note that Petrobangla has Dr. Tawfiq-e-Elahi Chowdhury, Bir Bikram been putting its best effort in living up to future challenges by taking up hydro- carbon explorations, especially signing of production sharing contracts (PSC) for exploration in the sea. It is also accelerating coal mining to ensure availability of alternative energy source in the country. The importation of LNG helps not only to reduce the present demand-supply gap but also to keep the wheels of the economy going. It is equally important that the users undertake measures to improve and enhance efficiency of existing and future operations. We need to create awareness 04 Annual Report 2018 PETROBANGLA Nasrul Hamid MP State Minister Ministry of Power, Energy & Mineral Resources Government of the People’s Republic of Bangladesh I am delighted to know that Bangladesh Oil, resources from 26 blocks in deep and shallow Gas and Mineral Corporation (Petrobangla) sea areas, 4 PSCs were signed for 4 blocks and is going to publish its Annual Report 2018, exploration activities are in progress in these encompassing the activities of the organization. blocks. Petrobangla undertook an initiative to I welcome all who are related to publish this conduct 2D Non-Exclusive Multi-Client Seismic time demanding report. Survey in the offshore area of Bangladesh in order to attract more investment in offshore oil Steady and adequate supply of primary energy and gas exploration. A PSC bidding round will is the sine qua non for economic growth be organized as soon as possible synchronizing and development. For achieving the middle- with the Multi-Client data availability. income status of Bangladesh by 2021, the endeavors made by Petrobangla in exploration, Feasibility Study for extension of existing development, production and distribution of underground mining operation of Barapukuria natural gas and coal are remarkable. During Coal Mine has already been completed vis a Message the last ten years, Petrobangla has been able vis feasibility study for an open pit mine in the to increase gas supply by 84% although the northern part of this coal field is under process. steady annual economic growth has generated Feasibility study in the 1st stage on Dighipara even more demand for primary energy. In order coal field proves the prospect of this field and to explore new gas fields for meeting the rising coal reserve has been estimated as 865 million energy demand, initiatives are underway to metric tons. implement various work including ramping up of production, transmission and distribution I am hopeful and happy to keep confidence capacities and import of LNG. With the aim of on Petrobangla and its associated companies importation of 1,000 MMSCFD LNG, 2 FSRUs towards their achievement to the high with having the capacity of 500 MMSCFD each have their energy dedication, commitment, integrity been installed at Moheshkhali and commenced and target-oriented performance with hard transmission to national gas grid in 19 August, work and utmost sincerity. 2018 and 30 April, 2019 respectively and RLNG is being supplied to the national grid I wish every success of this Annual Report from these terminals. As a result, the overall 2018. gas supply situation including pressure of gas has been improved across the country. Initiative Joy Bangla, Joy Bangabandhu. has been taken to install a land based LNG terminal at Matarbari by 2023-24 having the Long Live Bangladesh. capacity of 1,000 MMSCFD. Besides Matarbari land based LNG terminal, it has been planned to install more land based LNG terminal based on the demand of gas till 2041. To harness natural Nasrul Hamid, MP Annual Report 2018 05 Senior Secretary Energy & Mineral Resources Division Ministry of Power, Energy & Mineral Resources Government of the People's Republic of Bangladesh It gives me immense pleasure to know that productivity. Being a clean fuel, natural gas Bangladesh Oil, Gas and Mineral Corporation also contributes much towards environmental (Petrobangla) is going to publish its Annual conservation of the country. Report, 2018 encompassing the activities of the organization and its companies for the FY To meet the demand-supply gap, Petrobangla 2017-18. I welcome the endeavour and works is implementing a number of projects for related to publish this report. enhancing supply and improving transmission capacity of natural gas. It has already installed The government of Bangladesh has a vision to 2 FSRUs at Moheshkahali for importing 1,000 become a middle-income country by 2021 and MMscfd of LNG to ease the demand and supply a developed country by 2041. It is one of the gap of gas. Initiative has been taken to conduct fastest-growing economies in the Asian region. 2D Non-Exclusive Multi-Client Seismic Survey Message Its GDP is growing at a rate higher than 8% per in the offshore area of Bangladesh and a PSC annum. Reliable supply of energy at affordable bidding round will be organized as soon as price is a precondition for sustainable growth. possible synchronizing with the Multi-Client Present supply of gas including LNG is about data availability. It is also accelerating extensive 3,250 MMscfd against connected demand of coal mining to ensure availability of alternative about 3,658 MMscfd which is estimated to be energy source in the country. It is also engaged more than twice by 2041. Bangladesh is also in extracting granite which has become popular committed to ensure UN’s one of the sustainable modern construction material in recent years. development goals (SDGs) of securing access It may be noted that Petrobangla is a major to affordable, reliable, sustainable and modern contributor to the national exchequer. energy for everyone by 2030. I hope that Petrobangla and its companies Extensive use of natural gas in power, fertilizer, will continue to play their vital roles keeping industry, households has made it the energy in view the ongoing energy needs and be able of choice of the country. It accounts for about to achieve the target in the energy sector as 70% of commercial energy in Bangladesh. It is envisaged in Vision-2021 and Vision-2041 of comparatively cheaper than other conventional the Government and also be able to ensure sources of energy which we import from SDGs Goal 7. I wish Petrobangla every success abroad. The availability of low cost fuel provides in its ongoing and future ventures. a competitive edge to our industrial products at home and abroad. Natural gas is the prime source of producing chemical fertilizer which is contributing greatly to increase agriculture (Abu Hena Md. Rahmatul Muneem) 06 Annual Report 2018 PETROBANGLA Chairman Petrobangla Annual Report, 2018 of Bangladesh Oil, In the FY 2017-18, Petrobangla and its Gas and Mineral Corporation (Petrobangla) companies produced 968.7 billion cubic feet provides an overview of the key activities, (BCF) of natural gas, which was equivalent to projects and performances of the corporation 24.2 million metric tons of oil worth 10.37 billion in the FY 2017-18, together with its future US dollars. Besides, about 4.3 million barrels of plans and priorities as it moves forward with condensate was extracted from natural gas this 13 companies under it striving to achieve an year. A portion of it was fractionated into petrol, energy system that is environment-friendly, diesel and kerosene at the process plants of 3 sustainable and affordable.