FINAL UPDATED REPORT On Bangladesh Petroleum Potential and Resource Assessment 2010 Under Strengthening of Hydrocarbon Unit in the Energy and Mineral Resources Division (Phase-II) ADB Grant 0019: GTDP June, 2011 For HYDROCARBON UNIT Energy and Mineral Resources Division Government of the People’s Republic of Bangladesh TABLE OF CONTENTS PAGE I. EXECUTIVE SUMMARY ...................................................................................................vi 1. INTRODUCTION ................................................................................................................. 1 1.1 GENERAL BACKGROUND ....................................................................................... 1 1.2 CURRENT HYDROCARBON RELATED INFRASTRUCTURE ............................. 4 1.2.1 Producing Gas Fields ........................................................................................ 4 1.2.2 Gas Transmission and Marketing Infrastructure............................................... 5 1.2.3 Import and Refining of Crude Oil and Petroleum Products ............................. 8 1.2.4 Marketing of LPG ............................................................................................. 9 1.2.5 Marketing of Gas for CNG in Vehicles ............................................................ 9 1.2.6 Mining Sector.................................................................................................... 9 1.3 BLOCK SYSTEM ......................................................................................................... 9 1.3.1 Onshore Exploration Blocks ........................................................................... 10 1.3.2 Offshore Exploration Blocks .......................................................................... 13 1.3.3 Production Blocks ........................................................................................... 13 1.3.4 Awarded Blocks .............................................................................................. 13 1.4 EXPLORATION HISTORY ....................................................................................... 16 1.4.1 Onshore ........................................................................................................... 16 1.4.2 Offshore .......................................................................................................... 17 2. DATABASES ...................................................................................................................... 19 2.1 SEISMIC DATABASE ............................................................................................... 19 2.2 WELL DATABASE .................................................................................................... 20 2.3 PRODUCTION DATABASE ..................................................................................... 20 3. GEOLOGICAL DEVELOPMENT ..................................................................................... 26 3.1 REGIONAL GEOLOGICAL SETTING .................................................................... 26 3.2 TECTONIC EVOLUTION ......................................................................................... 27 3.3 MAJOR STRUCTURAL ELEMENTS ...................................................................... 29 3.4 DEPOSITIONAL HISTORY ...................................................................................... 32 3.5 STRATIGRAPHY ....................................................................................................... 38 3.5.1 Northwestern Shelf and Slope Area ................................................................ 38 3.5.2 Eastern Basinal Area ....................................................................................... 43 4. SOURCE ROCKS ............................................................................................................... 46 4.1 SOURCE ROCK POTENTIAL .................................................................................. 47 5. RESERVOIR ROCKS ......................................................................................................... 50 6. PETROLEUM SYSTEMS................................................................................................... 52 6.1 WESTERN PETROLEUM PROVINCE .................................................................... 53 6.1.1 Gondwana Petroleum System ......................................................................... 53 6.1.2 Bogra Shelf Petroleum System ....................................................................... 54 6.1.3 Western Delta Petroleum System ................................................................... 54 6.2 EASTERN FOLD BELT PETROLEUM PROVINCE ............................................... 55 June, 2011 i Gustavson Associates 6.2.1 Surma Petroleum System ................................................................................ 55 6.2.2 East Delta – Hill Tract Petroleum System ...................................................... 55 6.2.3 Southeastern Offshore Petroleum System ...................................................... 56 7. HYDROCARBON HABITAT ............................................................................................ 57 7.1 CONVENTIONAL TRAP TYPES AND PLAYS ...................................................... 57 7.1.1 Anticlines ........................................................................................................ 58 7.1.2 Fault Closures ................................................................................................. 59 7.1.3 Rollovers and Normal Faults .......................................................................... 59 7.1.4 Carbonate Platforms and Build-Ups ............................................................... 59 7.1.5 Prograding Delta Plays ................................................................................... 59 7.1.5.1 Turbidites ............................................................................................ 60 7.1.5.2 Pinch-Outs........................................................................................... 60 7.1.6 Channels, Incised Valleys and Buried Hills ................................................... 60 7.1.7 Gondwana Plays .............................................................................................. 60 7.2 UNCONVENTIONAL PLAYS AND BYPASSED PAYS ........................................ 61 7.2.1 Gondwana Coalbed Methane (CBM) [“Resource” Play] ............................... 62 7.2.2 Fractured Shale Gas “Resource” Play ............................................................. 69 7.2.3 Thin-Bed Analysis – Bypassed Thin Sandstone Pays .................................... 76 8. FIELDS AND DISCOVERIES ........................................................................................... 78 8.1 PRESENT PRODUCTION ......................................................................................... 78 8.2 PRODUCTION HISTORY ......................................................................................... 78 9. RESOURCE CLASSIFICATION ....................................................................................... 79 9.1 2001 REPORTING OF BANGLADESH RESOURCES ........................................... 79 9.2 PETROLEUM RESOURCE MANAGEMENT SYSTEM (PRMS) .......................... 79 9.3 SYSTEM USED IN THIS REPORT .......................................................................... 81 10. ASSESSMENT OF UNDISCOVERED RESOURCES ...................................................... 82 10.1 PREVIOUS ASSESSMENT STUDIES ..................................................................... 82 10.2 PRESENT ASSESSMENT STUDY ........................................................................... 87 10.2.1 Assessment Method ........................................................................................ 87 10.2.1.1 Identified Prospects and Leads ..................................................... 87 10.2.1.2 Unmapped Resources.................................................................... 89 10.2.1.3 Coalbed Methane .......................................................................... 90 10.2.1.4 Shale Gas / Shale Oil .................................................................... 91 10.2.1.5 Thin Beds ...................................................................................... 91 10.2.2 Mapped Undiscovered Resources (Hypothetical Resources) ......................... 92 10.2.2.1 Block 2 .......................................................................................... 94 10.2.2.2 Block 3 .......................................................................................... 95 10.2.2.3 Block 4 .......................................................................................... 95 10.2.2.4 Block 5 .......................................................................................... 96 10.2.2.5 Block 6 .......................................................................................... 96 10.2.2.6 Block 7 .......................................................................................... 96 June, 2011 ii Gustavson Associates 10.2.2.7 Block8 ........................................................................................... 96 10.2.2.8 Block 9 .......................................................................................... 97 10.2.2.9 Block 10 .......................................................................................