Bibiyana field much larger than thought
Saturday, January 19, 2013
Bibiyana field much larger than thought
Chevron pumps most gas in recent years; new gas supply depends on setting pipelines
Sharier Khan
In the Bibiyana gas field Chevron is to invest $500 million so that more gas could be extracted to address the country's gas crisis. US oil company Chevron has contributed the most to increasing gas supplies to the energy-starved nation in the last two years and it is set to do more by 2014.
In 2009, the country's gas supplies hovered around 1850-1900 million cubic feet per day (mmcfd), which was a few hundred mmcfd short of the demand.
Over the next four years, the supplies increased up to 2,250 mmcfd due to increased production by the national gas companies, Bapex and Chevron. Of this increase, Chevron alone provided 250 mmcfd.
And now it is investing half a billion dollars to increase Bibiyana gas field's production by 300 mmcfd by early next year to address the country's gas crisis.
The Bibiyana gas field is currently producing over 820 mmcfd gas and 3,610 barrels of condensate (a liquid petroleum by-product) a day. Many experts say that over-extraction of gas from this field would lead to premature death of this large field.
But Chevron differs with this opinion. Discovered in 1998, the Bibiyana field was initially estimated to have 2.4 trillion cubic feet (tcf) of proven recoverable gas. But follow-up studies and development of this field have confirmed that the field is much larger than the initial assessment.
Bibiyana is a world class reservoir that has the capacity to safely and efficiently deliver additional gas supply, says Chevron Bangladesh's Country Manager Geoff Strong.
Adding to Chevron's statement, a Petrobangla source said that the first assessment of the field's size was conducted in 2000 by DeGolyer & MacNaughton. In 2007, (Chevron expert) Ryder Scott conducted a new assessment that included additional data from 12 wells and a 3D seismic survey. Again, in September 2009, DeGolyer & MacNaughton gave a second report to Petrobangla.
This new report scaled up Bibiyana's proven gas reserve to 4.42 tcf, almost double the previous assessment. The report also said there is a high possibility of hitting up to 5.76 tcf gas in the field, the Petrobangla source said.
Based on this new figures, Chevron was allowed to increase production. From Bibiyana, Moulavibazar and Jalalabad fields, Chevron is currently producing 1150 mmcfd, roughly half the country's daily gas consumption.
Till now, the company has invested more than one billion dollars to explore and develop these fields under different Production Sharing Contracts (PSC). With most of the old investments recovered by Chevron, Petrobangla enjoys a major share of this gas for free.
Bibiyana field development
Under a programme approved by Petrobangla, Chevron is now drilling 10 wells in the Bibiyana field. Some of these wells will be drilled in the western and far southern part of Bibiyana that were untapped before.
This programme includes installation of a new Liquids Recovery Plant (LRP) to separate efficiently liquid fuel (condensate) from natural gas stream for other uses. This will produce around 4,000 barrels of Natural Gas Liquids (NGL) per day, which is worth $175 million a year at current import prices.
The Bibiyana Expansion project remains on track for start up in 2014 as previously announced. The project includes the drilling of four additional development wells, expansion of the gas plant's processing capacity and construction of an enhanced liquids recovery unit, Geoff Strong added. However, realising the full benefits of the Bibiyana expansion project requires the completion of the Bibiyana-Dhanua pipeline. Chevron's production is currently constrained by the existing national pipeline system capacity. We know GTCL is working hard on the completion of this critical project, he added.
But GTCL sources said construction of this pipeline remains uncertain as of today as its tender drew offers way much costlier than initially estimated. The authorities remain indecisive about whether they would go for a re-tender or go ahead with the costly offers.
Other activities
Describing the activities in its two other fields, Geoff Strong said, Following a six-month 3D seismic survey programme in
Moulvibazar, two new wells were drilled that started production in July-August 2012. These wells are now contributing about 60 percent of the Moulvibazar gas field's current total production. We continue to study the Moulvibazar field to look for more development well opportunities.
"Chevron is in the process of conducting a 3D seismic survey at Jalalabad to better delineate the field, evaluate additional reserves, and to assess the potential for additional development wells. The survey is expected to be complete by the end of 2013.
The company launched a compressor station in Muchai last year to improve gas supply pressure from Sylhet end to the national grid.
The Muchai compression station has increased the capacity of the North-South-gas pipeline system by about 80 mmcfd, mostly supplied from the Chevron-operated Bibiyana, Jalalabad and Moulvibazar gas fields, Strong said.
Besides, the oil company runs a number of social investment initiatives in collaboration with the NGOs around its gas fields to help them carry out their socio-economic activities. Currently, 30,000 people benefit from our programmes, said Strong.
Setting examples
Chevron Bangladesh is globally regarded as one of the best safety performers as it has worked for more than 37 million hours without a day lost due to injuries. It has employed around 2,500 Bangladeshis.
The company follows some exemplary practices which other companies can pick up for better environment and cost-effective operation. For instance, only 0.23 percent of Chevron's total natural gas production from its three fields is flared. Each gas field needs to run flares as a safety measure. The gas burnt by all other national fields for flare is manifold higher, experts say.
Chevron is also the only company in Bangladesh to re-inject water into the gas reservoir. This water comes out with the gas production. For instance, the Bibiyana field produces 250 barrels of water a day, all of which is re-injected into the field.
Saturday, January 19, 2013
Bibiyana field much larger than thought
Chevron pumps most gas in recent years; new gas supply depends on setting pipelines
Sharier Khan
In the Bibiyana gas field Chevron is to invest $500 million so that more gas could be extracted to address the country's gas crisis. US oil company Chevron has contributed the most to increasing gas supplies to the energy-starved nation in the last two years and it is set to do more by 2014.
In 2009, the country's gas supplies hovered around 1850-1900 million cubic feet per day (mmcfd), which was a few hundred mmcfd short of the demand.
Over the next four years, the supplies increased up to 2,250 mmcfd due to increased production by the national gas companies, Bapex and Chevron. Of this increase, Chevron alone provided 250 mmcfd.
And now it is investing half a billion dollars to increase Bibiyana gas field's production by 300 mmcfd by early next year to address the country's gas crisis.
The Bibiyana gas field is currently producing over 820 mmcfd gas and 3,610 barrels of condensate (a liquid petroleum by-product) a day. Many experts say that over-extraction of gas from this field would lead to premature death of this large field.
But Chevron differs with this opinion. Discovered in 1998, the Bibiyana field was initially estimated to have 2.4 trillion cubic feet (tcf) of proven recoverable gas. But follow-up studies and development of this field have confirmed that the field is much larger than the initial assessment.
Bibiyana is a world class reservoir that has the capacity to safely and efficiently deliver additional gas supply, says Chevron Bangladesh's Country Manager Geoff Strong.
Adding to Chevron's statement, a Petrobangla source said that the first assessment of the field's size was conducted in 2000 by DeGolyer & MacNaughton. In 2007, (Chevron expert) Ryder Scott conducted a new assessment that included additional data from 12 wells and a 3D seismic survey. Again, in September 2009, DeGolyer & MacNaughton gave a second report to Petrobangla.
This new report scaled up Bibiyana's proven gas reserve to 4.42 tcf, almost double the previous assessment. The report also said there is a high possibility of hitting up to 5.76 tcf gas in the field, the Petrobangla source said.
Based on this new figures, Chevron was allowed to increase production. From Bibiyana, Moulavibazar and Jalalabad fields, Chevron is currently producing 1150 mmcfd, roughly half the country's daily gas consumption.
Till now, the company has invested more than one billion dollars to explore and develop these fields under different Production Sharing Contracts (PSC). With most of the old investments recovered by Chevron, Petrobangla enjoys a major share of this gas for free.
Bibiyana field development
Under a programme approved by Petrobangla, Chevron is now drilling 10 wells in the Bibiyana field. Some of these wells will be drilled in the western and far southern part of Bibiyana that were untapped before.
This programme includes installation of a new Liquids Recovery Plant (LRP) to separate efficiently liquid fuel (condensate) from natural gas stream for other uses. This will produce around 4,000 barrels of Natural Gas Liquids (NGL) per day, which is worth $175 million a year at current import prices.
The Bibiyana Expansion project remains on track for start up in 2014 as previously announced. The project includes the drilling of four additional development wells, expansion of the gas plant's processing capacity and construction of an enhanced liquids recovery unit, Geoff Strong added. However, realising the full benefits of the Bibiyana expansion project requires the completion of the Bibiyana-Dhanua pipeline. Chevron's production is currently constrained by the existing national pipeline system capacity. We know GTCL is working hard on the completion of this critical project, he added.
But GTCL sources said construction of this pipeline remains uncertain as of today as its tender drew offers way much costlier than initially estimated. The authorities remain indecisive about whether they would go for a re-tender or go ahead with the costly offers.
Other activities
Describing the activities in its two other fields, Geoff Strong said, Following a six-month 3D seismic survey programme in
Moulvibazar, two new wells were drilled that started production in July-August 2012. These wells are now contributing about 60 percent of the Moulvibazar gas field's current total production. We continue to study the Moulvibazar field to look for more development well opportunities.
"Chevron is in the process of conducting a 3D seismic survey at Jalalabad to better delineate the field, evaluate additional reserves, and to assess the potential for additional development wells. The survey is expected to be complete by the end of 2013.
The company launched a compressor station in Muchai last year to improve gas supply pressure from Sylhet end to the national grid.
The Muchai compression station has increased the capacity of the North-South-gas pipeline system by about 80 mmcfd, mostly supplied from the Chevron-operated Bibiyana, Jalalabad and Moulvibazar gas fields, Strong said.
Besides, the oil company runs a number of social investment initiatives in collaboration with the NGOs around its gas fields to help them carry out their socio-economic activities. Currently, 30,000 people benefit from our programmes, said Strong.
Setting examples
Chevron Bangladesh is globally regarded as one of the best safety performers as it has worked for more than 37 million hours without a day lost due to injuries. It has employed around 2,500 Bangladeshis.
The company follows some exemplary practices which other companies can pick up for better environment and cost-effective operation. For instance, only 0.23 percent of Chevron's total natural gas production from its three fields is flared. Each gas field needs to run flares as a safety measure. The gas burnt by all other national fields for flare is manifold higher, experts say.
Chevron is also the only company in Bangladesh to re-inject water into the gas reservoir. This water comes out with the gas production. For instance, the Bibiyana field produces 250 barrels of water a day, all of which is re-injected into the field.
