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Pak oil co eager to take over Tullow assets in BD, own country
Published : Thursday, 13 December 2012
Financial Express :: Financial Newspaper of Bangladesh
M Azizur Rahman
Pakistan Petroleum Ltd (PPL) is eager to buy UK-based Tullow Oil's assets in Bangladesh and Pakistan that the company plans to sell under a package deal, a company insider said.
He said the PPL is now evaluating Tullow's assets in the two South Asian countries before submitting final bid to buy the same.
Tullow Oil is planning to divest all of its Asian assets, which are located in Bangladesh and Pakistan, to focus on its huge offshore discovery in Ghana and exploration in South America and Africa.
Australian exploration and production company Santos that initially wanted to buy Tullow's Bangladesh assets lost interest recently following the discovery of the Srikail gas field by the Bangladesh Petroleum Exploration and Production Company (Bapex).
The Srikail field, with recoverable gas reserves of 300 billion cubic feet (Bcf), is located next to Tullow's producing onshore Bangora gas field in Comilla district under block 9, about 100 km southeast of the capital Dhaka.
Bapex discovered the field in mid-July last and plans to start production this month.
Tullow has a 30 per cent stake in the Bangora gas field, which has a gross output of around 100 million cubic feet per day (mmcfd), or about 17,000 barrels of oil equivalent per day (boe/d).
Tullow's share from the field is about 5,100 boe/d.
The problem is that Bangora's gas output and reserves could fall sharply with the start of production from Srikail, a Santos source said previously.
Tullow first became involved in oil and gas exploration activities in Bangladesh in 1997 and now participates in exploration, development and production in Block 9.
Tullow operates the 1,770 sq km Block 9 with partners Niko Resources and the Bangladesh Petroleum Exploration & Production Company.
A three-well drilling programme carried out in 2003 and 2004 resulted in two gas discoveries, Bangora and Lalmai.
The appraisal programme for these discoveries was completed in 2006 and production from the Bangora-1 well commenced the same year.
In March 2012, Tullow took the decision to commence a process to sell these Asian assets in order to focus on its core African and Atlantic Margin strategy.
In Pakistan, Tullow has exploration, development and production interests across an area of 13,171 sq km (4215 sq miles).
Tullow's sales revenue from Asia totalled $20.8 million in 2011, while its global sales revenue was $2.3 billion.
Meanwhile, China National Offshore Oil Corporation (CNOOC), which was initially in talks to buy Bangladesh assets alone and later agreed to purchase Pakistani assets finally decided not to run after the Tullow's Asian assets, said another source close to CNOOC.
"We have inquired about Tullow's selling of Bangladesh stakes. But the UK firm informed us that the sale of stakes is not yet finalised," said a senior Petrobangla official.
Published : Thursday, 13 December 2012
Financial Express :: Financial Newspaper of Bangladesh
M Azizur Rahman
Pakistan Petroleum Ltd (PPL) is eager to buy UK-based Tullow Oil's assets in Bangladesh and Pakistan that the company plans to sell under a package deal, a company insider said.
He said the PPL is now evaluating Tullow's assets in the two South Asian countries before submitting final bid to buy the same.
Tullow Oil is planning to divest all of its Asian assets, which are located in Bangladesh and Pakistan, to focus on its huge offshore discovery in Ghana and exploration in South America and Africa.
Australian exploration and production company Santos that initially wanted to buy Tullow's Bangladesh assets lost interest recently following the discovery of the Srikail gas field by the Bangladesh Petroleum Exploration and Production Company (Bapex).
The Srikail field, with recoverable gas reserves of 300 billion cubic feet (Bcf), is located next to Tullow's producing onshore Bangora gas field in Comilla district under block 9, about 100 km southeast of the capital Dhaka.
Bapex discovered the field in mid-July last and plans to start production this month.
Tullow has a 30 per cent stake in the Bangora gas field, which has a gross output of around 100 million cubic feet per day (mmcfd), or about 17,000 barrels of oil equivalent per day (boe/d).
Tullow's share from the field is about 5,100 boe/d.
The problem is that Bangora's gas output and reserves could fall sharply with the start of production from Srikail, a Santos source said previously.
Tullow first became involved in oil and gas exploration activities in Bangladesh in 1997 and now participates in exploration, development and production in Block 9.
Tullow operates the 1,770 sq km Block 9 with partners Niko Resources and the Bangladesh Petroleum Exploration & Production Company.
A three-well drilling programme carried out in 2003 and 2004 resulted in two gas discoveries, Bangora and Lalmai.
The appraisal programme for these discoveries was completed in 2006 and production from the Bangora-1 well commenced the same year.
In March 2012, Tullow took the decision to commence a process to sell these Asian assets in order to focus on its core African and Atlantic Margin strategy.
In Pakistan, Tullow has exploration, development and production interests across an area of 13,171 sq km (4215 sq miles).
Tullow's sales revenue from Asia totalled $20.8 million in 2011, while its global sales revenue was $2.3 billion.
Meanwhile, China National Offshore Oil Corporation (CNOOC), which was initially in talks to buy Bangladesh assets alone and later agreed to purchase Pakistani assets finally decided not to run after the Tullow's Asian assets, said another source close to CNOOC.
"We have inquired about Tullow's selling of Bangladesh stakes. But the UK firm informed us that the sale of stakes is not yet finalised," said a senior Petrobangla official.
