Annual

Report
2016

Annual
Report 2016

PETROBANGLA
Bangladesh Oil, Gas and Mineral Corporation
PETROBANGLA
Annual
Report
2016

PETROBANGLA
Bangladesh Oil, Gas and Mineral Corporation
Annual Report 2016

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
01
 Petrobangla

Contents Sangu Gas Field in the Bay of Bengal

01 Message of the Adviser (Minister) to the Hon’ble Prime Minister, MoPEMR 04

02 Message of the Hon’ble Minister of State, MoPEMR 05
03 Message of the Secretary, EMRD 06
04 Introduction by Chairman, Petrobangla 07-08
05 Board of Directors (Incumbent) 09
06 Past and Present Chairmen of Petrobangla 10
07 The Genesis and Mandate 11
08 Petrobangla and the Government 12
09 A Brief History of Oil, Gas and Mineral Industry in Bangladesh 13-14
10 Activities of Petrobangla 15-30
11 The Petrobangla Companies 31-45
12 Development Programmes for FY 2015-16 46-48
13 Future Programmes 49
Annual Report 2016

14 Plan for Production Augmentation 50

15 Data Sheets 51-58
16 Petrobangla Accounts 59-60
02
 Petrobangla

Our
Vision
 To provide energy for sustainable economic growth and maintain energy
security of the country

Our
Mission
 To enhance exploration and exploitation of natural gas
 To provide indigenous 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
Annual Report 2016


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
03
 Tawfiq-e-Elahi Chowdhury, BB, PhD
Adviser (Minister) to the Hon’ble Prime Minister
Power, Energy & Mineral Resources Affairs
Government of the People's Republic of Bangladesh.

Message
The role of energy in the overall development of countries like Bangladesh hardly
needs emphasis. Petrobangla and its companies have been playing the dominant
role in exploration, production, transmission, distribution and development of the
two vital sources of energy - gas and coal in the country. I trust the Annual Report
2016 would document its continued efforts in discharging those responsibilities.
The Father of the Nation Bangabandhu Sheikh Mujibur Rahman bought five gas
fields from British oil company, Shell Oil, at a nominal price on 09 August, 1975 for
ensuring energy security of the country. Following the path of development
envisaged by the Father of the Nation, his worthy daughter, Prime Minister Sheikh
Hasina, has also given the country's energy security one of the highest priorities.
Extensive development programs were implemented during the last seven and a
half years resulting in remarkable growth in the production and distribution of gas.
The settlements of maritime boundaries with our neighbors have opened new
possibilities for energy resources. Petrobangla is earnestly pursuing initiatives to
harness the potentials from the 26 blocks in deep and shallow seas, covering of
19.5 thousand square kilometers. Alongside, energy efficiency and conservation
measures should be strengthened. Customers should be encouraged to explore
and adopt newer ways for cogeneration and trigeneration in the use of energy.
I hope the dedicated workforce of Petrobangla and its subsidiary companies will
continue to be significant contributor to the prosperity of Bangladesh. My
felicitations to the officials associated in the publication of the Annual Report
2016.
I wish Petrobangla continued success.
Joy Bangla, Joy Bangabandhu
Long Live Bangladesh
Annual Report 2016

Dr. Tawfiq-e-Elahi Chowdhury, Bir Bikram

04
 Nasrul Hamid MP
Minister of State
Ministry of Power, Energy & Mineral Resources
Government of the People's Republic of Bangladesh

Message
I am indeed pleased to know that Bangladesh Oil, Gas and Mineral Corporation
(Petrobangla) is going to publish its Annual Report, 2016 reflecting the activities of
Petrobangla and its companies. My heartiest thank and gratitude to all of its
officials contributed in publishing the Annual Report.
Natural gas is a non-renewable energy resource. It provides about two-thirds of
the total consumption of commercial energy of our country and as such, our
economic development largely depends on sufficient supply as well as efficient
utilization of this indigenous energy resource. The Government is very sincere and
active in its endeavor for enhancing the supply of energy which is indispensible for
continuing the pace of development. Out of the total daily gas production capacity
grown over the last 45 years in the history of Bangladesh, one-third has been
achieved due to the sincere efforts made by the Government led by Hon’ble Prime
Minister Sheikh Hasina. At present, we have 20 gas fields in production with total
capacity, 2,750 million cubic feet gas per day from 112 wells. Whereas, the daily
gas production in January, 2009 was 1,744 million cubic feet.
Rapid urbanization and social development have increased the demand for energy
in our country. With the object of reducing the demand-supply gap, the
Government has invigorated its effort to enhance gas production along with
installation of a Floating Storage and Re-gasification Unit (FSRU) at Moheshkhali
for supplying 500 MMSCFD of Liquefied Natural Gas (LNG) within April 2018.
Construction of 30” x 91 km transmission pipeline from Moheshkhali to Anowara
in Chittagong has already been completed. In addition, initial activities have been
started to install two land based LNG terminals, one at Kutubdia and the other at
Paira port area with having the capacity of handling LNG equivalent to 1,000
MMSCFD of gas each. Initiation has been taken by the Government to complete a
108 wells programme in onshore by 2021. Besides, intensifying the mining of coal
is also high on the agenda of Petrobangla.
I hope that Petrobangla and its companies will continue to play their vital roles
keeping in view the ongoing energy needs and shall be able to achieve the target
in the energy sector as envisaged in Vision 2021 of the Government.
Joy Bangla, Joy Bangabandhu
Long Live Bangladesh.
Annual Report 2016

(Nasrul Hamid)

05
 Secretary
Energy & Mineral Resources Division
Ministry of Power, Energy & Mineral Resources
Government of the People's Republic of Bangladesh

Message
It is a pleasure knowing about the upcoming Bangladesh Oil, Gas and Mineral
Corporation (Petrobangla) Annual Report, 2016 publication which highlights the
activities as performed in the 2015-16 Fiscal Year.
We are well aware and it is an accepted fact that the energy intensity and the
sustainable development are reciprocally linked. To highlight energy, towards the
higher economy growth trajectory, the intensive and optimum efficient use of
natural gas is unique. It achieved the ''Energy of Choice'' due to its extended use in
power, fertilizer production, rapid industrialization and households. 73% of
commercial energy is met by the natural gas. It, as relatively low cost fuel, provides
a competitive edge of our industrial products at home and abroad. In the recent
multiplication of agricultural productions, natural gas played intensely in the
backdrop of regular and timely production of the chemical fertilizer. In
environmental conservation in the country, comparatively cleaner fuel natural gas
is a preferred choice. Being non-renewable, the optimal and efficient use of
natural gas and coal put the maximum benefit to our economy.
For achieving middle-income Bangladesh by 2021 the endeavors made by the
Petrobangla in exploration, development, production and distribution of natural
gas and coal are remarkable which maintain the pace of the required economic
boost. Petrobangla has invigorated its effort to enhance gas production and has
already been stepped in the process of importing Liquefied Natural Gas (LNG) as
to play catalyst to ease the demand and supply gap of the natural gas. Beside
natural gas and coal exploration it is also working on granite extraction which has
become popular modern construction material in recent years. Due to present
Government energy focused policy adoption and all-out efforts the gas price is
still affordable to the stakeholders which helps the boost in the economic growth.
I am hopeful and happy to keep confidence on Petrobangla and its associated
companies towards their achievement to the high with their energy dedication,
commitment, integrity and target-oriented performance with hard work and
utmost sincerity.
I take this opportunity to thank the Chairman Petrobangla and his colleagues for
bringing out this publication. I hope they will make their best efforts to publish The
Annual Report 2016

Annual Report in a much improved form in future.

I wish the best of their achievements in their activities fixed ahead.

(Nazimuddin Chowdhury)
06
 Chairman
Petrobangla

Introduction
I am, indeed, delighted to present the Annual Report, 2016 of Petrobangla that
provides an overview of the key activities, projects and performances of the
corporation in the FY 2015-16, as well as future plans and priorities as it
continues its endeavor with its 13 companies for ensuring environment-friendly,
sustainable and affordable primary energy supply in the country.
In the FY 2015-16, Petrobangla and its companies produced 973 billion cubic feet
(BCF) of natural gas, which was equivalent to 24.3 million metric tons of oil worth
7.5 billion US dollars. Besides, about 4.1 million barrels of condensate was
extracted from natural gas this year. A portion of it was fractionated into petrol,
diesel and kerosene at the process plants of 3 companies under Petrobangla, and
rest of the condensate was sold to Bangladesh Petroleum Corporation (BPC) and
private fractionation plants. The lone coal mining company of Petrobangla
extracted 1.1 million metric tons of coal this year. That is, Petrobangla and the
companies under its umbrella provided fuels, around three-quarters of country’s
total commercial energy supply, worth around 7.8 billion US dollars in aggregate to
the energy basket of the country in FY 2015-16.
Total initial recoverable proven plus probable gas reserve of 26 fields, discovered
so far in the country, has been estimated to be at 27.12 trillion cubic feet (TCF); out
of this estimated proven recoverable reserve (P1) is 20.77 TCF while the
recoverable probable (P2) reserve is 6.35 TCF. Up to December, 2016 as much as
14.24 TCF gas was produced, leaving only 12.88 TCF of recoverable gas in 2P
category. Currently, 20 gas fields are in production with 101 wells on-stream. Gas
supply in the country increased from 600.86 BCF in FY 2007-08 to 973 BCF in FY
2015-16 due to various development programmes undertaken by Petrobangla
during this period. Of this production, grid power consumed the largest share,
about 399.6 BCF (41.33%) followed by captive power and industry which
consumed 160.8 BCF (16.62%) and 156.0 BCF (16.13%) respectively; fertilizer 52.6
BCF (5.44%), domestic 141.5 BCF (14.63%), CNG 46.5 (4.81%) and commercial and
tea-estates together 9.0 BCF (1.1%) in FY 2015-16.
Gradual transformation of the country’s economy from the agrarian towards
industrial one, marked by higher economic growth and consequent uplift of
standard of living, is calling for rapid growth in energy demand in recent years.
Annual Report 2016

Shunning the sluggish policies of previous regimes, exploration and development

activities in the gas sector got a momentum as soon as the Government under
the leadership of Hon’ble Prime Minister Sheikh Hasina, the daughter of the
Father of the Nation came to power in 2009. Since then, a number of new gas
structures have been delineated;12 exploration and 52 development wells have
been drilled, and workover of 25 wells have been completed. These activities
07
 Petrobangla

added a gross flow capacity of 1,503 million standard cubic feet per day (MMscfd) with net addition of 1,006 (MMscfd) due
to natural decline in flow capacity of some wells as well as depletion of two gas fields. As a result gas supply capacity has
risen to 2,750 MMscfd. At the same time, a total of 862 km transmission pipeline has been laid under different projects in
addition to installation of three compressor stations, which has contributed to larger flow of gas in the system.
Although, the problem of energy shortages is confronting since long, the pace of exploration has been rather slow in the
past, leaving large area of the country still unexplored or underexplored. To come out of this paradox, Bangladesh
Petroleum Exploration and Production Company Limited (BAPEX), the lone national exploration company under
Petrobangla, has embarked on implementation of extensive exploration programmes that include drilling of 55
exploration wells and 31 development wells within 2021 along with 3,000 line-kilometre of 2D seismic survey during
2016 to 2019 in the onshore.
In order to reduce overwhelming dependence on natural gas and diversify the sources of energy supply, Petrobangla has
developed the first coal mine of the country at Barapukuria. At present, Barapukuria Coal Mine is producing approximately
4000-5000 metric tons of coal daily. About 1.1 million metric tons of coal was produced in the FY 2015-16. The coal
extracted from this mine is mainly used to fuel the only coal fired 250 MW power plant of the country located in
Barapukuria. Two feasibility projects, one for extension of Barapukuria and another for development of Dhighipara coal
mine, are underway with the objectives of enhancing coal mining in the country.
Apart from these, Maddhapara Granite Mining Company Limited at Dinajpur - the only company of its kind in the country
- extracts granite which is used mostly as construction material. Initiative has been taken to conduct a feasibility study to
expand the operation of the existing mine. In the FY 2015-16, a total 1,53,719 metric tons of granite was produced from
Maddhapara Mine and 6,25,831 metric tons was sold. Considering the rise in demand, Petrobangla has undertaken a
feasibility study for expansion of the granite mine. The manufacturing of Ceramic Tiles (Wall Tiles, Roof Tiles, Facing,
Pavement) by using stone dust; and manufacturing of Granite Polish Block, Mosaic Block, and Gem Stone are in progress
to diversify the use of granite.
To rid the country from perennial fuel shortage, which is having a heavy toll on the country’s economy, Petrobangla is set
to import liquefied natural gas (LNG) in tandem with its endeavors to scale up exploration activities for new resources in
the country. A Terminal Use Agreement (TUA) has been signed with Excelerate Energy Bangladesh Ltd. (EBBL) to setup an
FSRU for supplying 500 MMSCFD RLNG within April, 2018. Another TUA has been signed with Summit LNG Terminal Co.
Ltd. to supply 500 MMSCFD RLNG expected to be commissioned in October, 2018. As long-terms measures two/three
land based LNG terminals have been planned; feasibility studies are in progress for installation of these terminals at
Moheshkhali, Kutubdia and Payra. A long-term contract with RasGas, Qatar is in final stage; discussion with Oman Trading
International (OTI) and Pertamina, Indonesia are in progress to purchase LNG on G to G basis.
Exploration in the offshore is gathering momentum. Initial exploration activities are in progress. In the first phase ONGC
Videsh Ltd.(OVL) has completed 3,008 lkm of 2D marine seismic survey data acquisition in blocks SS-04 and SS-09. In the
2nd phase OVL will carry out 2,542 lkm 2D OBC (Ocean Bed Cable) survey. As on December 2016 OVL completed about
500 lkm out of 2,542 lkm program in the 2nd phase survey. While in block SS-11 Santos conducted 3,050 line kilometer
of 2D seismic survey in 2015. Interpretation and integration of the data sets had been completed and they submitted the
report to Petrobangla in the first quarter of 2016. Under the Special Act for speedy gas supply, one PSC for deep sea block
DS-12 has been signed with POSCO DAEWOO Corporation. They are preparing for conducting seismic survey in this block.
During FY 2015-16, Petrobangla group contributed to national exchequer an amount to the tune of Tk. 75,215.7 million
and saved a considerable amount of foreign exchange by substituting import of fuel.
Petrobangla as a the state-owned flagship organization in the energy sector of the country, with its large army of
dedicated workforce, is making its all-out efforts for maximizing the supply of fossil fuels, be it from indigenous sources or
imported. It is now well perceived that after completion of ongoing efforts of Petrobangla, gas shortage in the country will
soon be a matter of past in the country by the grace of Almighty.
I hope this issue of Annual Report will be of interest to a wide variety of readers as a reference document.
Annual Report 2016

(Abul Mansur Md. Faizullah ndc)

08
 Petrobangla

Board of
Directors (Incumbent)

Abul Mansur Md. Faizullah ndc Md. Moinul Islam Niru Shamsun Nahar
Chairman Addl. Secy. Finance Division Chief, Industry & Energy Division
Petrobangla representing MoF Planning Commission
Chairman of the Board Director of the Board representing MoP
Director of the Board

Kazi Zebunnessa Begum Md. Mostafa Kamal Md. Towhid Hasanat Khan
Addl. Secy. (Development) Director (Admin) Director (Finance)
representing EMRD Petrobangla Petrobangla
Director of the Board Director of the Board Director of the Board

Annual Report 2016

Jameel Ahmed Aleem Md. Ayub Khan Chowdhury Md. Mahbub Sarwar
Director (Operation and Mines) Director (Planning) Director (PSC)
Petrobangla Petrobangla Petrobangla
Director of the Board Director of the Board Director of the Board
09
 Petrobangla

Past and Present

Chairmen of Petrobangla

No. Name Tenure

01 Dr. A. Y. M. Habibur Rahman 21.04.1972 - 14.06.1976

02 Dr. Nazrul Islam 19.07.1976 - 14.02.1980
03 Syed Hasan Ahmed 18.02.1980 - 05.10.1981
04 M. A. Faiz 12.10.1981 - 28.02.1983
05 Gr. Capt. Qazi Aftab Ahmed, psc 01.03.1983 - 26.05.1984
06 Shafiul Alam 26.05.1984 - 27.08.1984
07 Jalaluddin Ahmed 27.08.1984 - 10.03.1985
08 Md. Habibur Rahman 07.04.1985 - 09.10.1988
09 Jamiluddin Ahmed 10.10.1988 - 03.12.1988
10 Lt. Col (Retd.) Heshamuddin Ahmed, psc 03.12.1988 - 25.11.1989
11 Ataul Karim 27.11.1989 - 31.12.1990
12 M. A. Lutful Matin 01.01.1991 - 09.05.1992
13 S.K.M. Abdullah 09.05.1992 - 31.12.1995
14 Dr. Mujibur Rahman Khan 04.01.1996 - 25.05.1996
15 Md. Mosharraf Hossain 25.05.1996 - 31.12.1996
15.04.1997 – 22.05.2001
16 Professor Dr. Md. Hussain Monsur 05.07.2001 - 01.11.2001
17 Syed Sajedul Karim 03.12.2001 - 28.04.2003
18 S.R. Osmani 30.10.2005 - 14.12.2005
19 A.M.M. Nasiruddin 30.10.2005 - 14.12.2005
20 M Musharraf Hossain Bhuiyan 14.12.2005 - 09.01.2007
21 Md.Wahidunnabi Chowdhury 14.01.2007 - 14.02.2007
22 Dr. Sheikh Abdur Rashid 14.02.2007 - 24.09.2007
23 Jalal Ahmed 24.09.2007 - 19.04.2009
Annual Report 2016

24 Major Md.Muqtadir Ali (Retd.) 19.04.2009 - 17.10.2009

25 Professor Dr. Md. Hussain Monsur 18.10.2009 - 18.10.2014
26 Istiaque Ahmad 23.10.2014 - 21.12.2016
27 Abul Mansur Md. Faizullah ndc 01.01.2017 - Incumbent
10
 Petrobangla

The Genesis
Bangladesh Minerals, Oil and Gas Corporation (BMOGC) was established pursuant to
President’s Order no. 27 of 26 March, 1972 for dealing with the exploration and
development of oil, gas and mineral resources of the country. The activities of the
Corporation relating to minerals was segregated and placed under a new organization
named Bangladesh Mineral Exploration and Development Corporation (BMEDC) formed
by President’s Order no. 120 of 27 September, 1972. The reconstituted Bangladesh Oil
and Gas Corporation (BOGC) was short-named “Petrobangla” by Ordinance no. XV of 22
August, 1974. Through the repeal of Ordinance no. LXX of 1974, Oil and Gas
Development Corporation was abolished and all its assets and liabilities were vested in
Petrobangla. On 13 November, 1976, by promulgation of the Ordinance no. 88, the
import, refining and marketing of crude and petroleum products were separated and
vested in the newly-formed Bangladesh Petroleum Corporation (BPC).
BOGC and BMEDC were merged into a single entity under the name “Bangladesh Oil, Gas
and Mineral Corporation (BOGMC)” by Ordinance no. 21 of 11 April, 1985. The
Corporation was short named “Petrobangla” and given power to hold shares or interest
in any company formed for the purpose of exploration and exploitation of oil, gas and
mineral resources by Act XI of February, 1989.

Functions Petrobangla has been assigned with the following functions by the Bangladesh Oil, Gas
and Mineral Corporation Ordinance, 1985 :
and a. to undertake research in the field of oil, gas and minerals;
Powers b. to prepare and implement programmes for the exploration and development of oil,
of gas and mineral resources;
Petrobangla c. to produce and sell oil, gas and mineral resources; and
d. to perform such other functions as the Government may, from time to time, assign
to the Corporation.

Without prejudice to the generality of the foregoing provisions, the Corporation shall, in
particular, have power :
a. to undertake research for alternative use of natural gas;
b. to carry out geological, geophysical and other surveys for the exploration and
development of oil, gas and mineral resources;
c. to carry out drilling and other prospecting operations to prove and estimate the
reserves of oil, gas and mineral resources and collect all data required for adopting
the most suitable extraction and mining method;
d. to set up mining industries and to continue production and sale of mined
commodities;
e. to take up, execute and operate any project on mining and mineral development;
Annual Report 2016

f. to contribute towards the cost of any studies, experiments or technical research,

connected with the functions of the Corporation and under-taken or done in the
interest of the Corporation by any other person, body or agency; and
g. to undertake, assist or encourage the collection, maintenance and publication of
statistics, bulletins and monographs pertaining to the business of the Corporation.

11
 Petrobangla

Petrobangla operates as a public sector statutory body pursuant to Bangladesh Oil,

Gas and Mineral Corporation Ordinance, 1985 and Bangladesh Oil, Gas and Mineral
Corporation (Amendment) Act, 1989. The general direction and administration of the
affairs and business of the Corporation vest in its Board of Directors. It is the policy
making and managing body of the Corporation, with members from Energy, Finance
and Planning Ministries. The Board in discharging its functions acts on commercial
consideration having due regard to public interest. The Corporation is under the
Petrobangla administrative control of the Energy and Mineral Resources Division of the Ministry
of Power, Energy and Mineral Resources. The Corporation has also close
and The relationship, through the Ministry of Power, Energy and Mineral Resources, with the
Government Ministry of Finance and the Ministry of Planning for its development programmes.
There is also active relationship between the Corporation and other functional
bodies such as Bangladesh Energy Regulatory Commission, National Board of
Revenue, the Department of Explosives and the Department of Environment for
relevant purposes.
The activities of the Corporation is reviewed and examined by the Public Accounts
Committee and the Parliamentary Standing Committee on Power, Energy and
Mineral Resources.

Accountability
Chain

Government Jatiyo Sangsad

Prime Minister (Parliament)

Parliamentary
Standing Committee

Ministry of Energy and Mineral Resources Planning Commission

Finance Division, Ministry of PE&MR Ministry of Planning

Petrobangla Bangladesh Energy Regulatory

Chairman Commission (BERC)
Annual Report 2016

Companies
Managing Directors

12
 Petrobangla

A Brief History of
Oil, Gas and
Mineral Industry
In Bangladesh

The beginning : up to 1947

The search for oil and gas in the area constituting Bangladesh began in the later part of the 19th century through some
isolated geological mapping. The first serious attempt to find oil and gas was undertaken in Sitakund in 1908 by the Indian
Petroleum Prospecting Company, 18 years after the first oil discovery in Digboi, Assam. During 1923-31 Burmah Oil
Company (BOC) drilled 2 shallow wells in Patharia. The wells were abandoned though there was a reported show of oil. A
total of 6 exploratory wells were drilled, the deepest being 1047 meters. There was, however, no discovery and the
Second World War disrupted further activities.

The interim : 1948 to 1971

The promulgation of Petroleum Act in 1948 generated a lot of interest in oil and gas exploration by international oil
companies. The Standard Vacuum Oil Company (STANVAC) of USA, Pakistan Petroleum Ltd. (PPL), Burmah Oil Company
affiliate and Pakistan Shell Oil Company (PSOC) carried out exploration till the end of the sixties. STANVAC drilled 3 wells at
Hazipur, Bogra and Kuchma in the north-western part of the country without success. PPL drilled wells in Haripur,
Patharia, Chhatak, Fenchuganj, Patiya and Lalmai and made the first gas discovery in Haripur in 1955, followed by Chattak
in 1959. PSOC was the most successful company and discovered 5 gas fields named Titas, Habiganj, Rashidpur, Kailashtila
and Bakhrabad. They also drilled the first offshore well Cox's Bazar-1, which was dry.
Oil and Gas Development Corporation (OGDC) was established in 1961 providing an institutional foundation for
exploration of oil and gas in the country. OGDC carried out geological and geophysical surveys including gravity, magnetic
and seismic types and drilled wells in Jaldi and Semutang, discovering gas in Semutang in 1970.

The way forward : 1972 to 1979

After the independence of Bangladesh, exploration activities by both national and international companies gathered pace.
Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) continued its exploration efforts while the Bangladesh
Petroleum Act was passed in 1974 to facilitate international participation under Production Sharing Contract (PSC). The
offshore area of Bangladesh was divided into 6 blocks, which were taken up by Ashland, ARCO, BODC (Japex), Union Oil,
Canadian Superior Oil and Ina Naftaplin under PSCs. These companies carried out gravity, magnetic and seismic surveys
(about 32,000 km) and drilled 7 wells. Of them, only Union Oil Company discovered an offshore gas field Kutubdia in 1977.
This phase of PSC ended in relinquishment of the blocks by the PSC operators in 1978. On 9 August, 1975, Government
led by the Father of the Nation Bangabandhu Sheikh Mujibur Rahman purchased 5 gas fields, namely Titas, Habiganj,
Rashidpur, Kailashtila and Bakhrabad from British company, Shell Petroleum Company Limited, for a nominal amount of
4.5 million pound sterling. This landmark decision taken by the then Government laid the foundation of energy security of
the country by introducing sole ownership of the state over these major gas fields.

Gathering momentum : 1980 onwards

The 1980s saw accelerated exploration activities by Petrobangla. During the time, 12 exploration wells were drilled at Muladi,
Annual Report 2016

Begumganj, Singra, Beanibazar, Atgram, Feni, Fenchuganj, Sitakund, Bogra, Kamta, Marichakandi (Meghna) and Belabo (Narshindi); and
7 gas fields were discovered at Begumganj, Beanibazar, Feni, Fenchuganj, Kamta, Marichakandi (Meghna) and Belabo (Narshindi). Among
these, Fenchuganj no. 2 well remains the deepest one drilled so far in Bangladesh (4,977m). Meanwhile, a new milestone was achieved
when Petrobangla discovered the first commercial oil pool in Sylhet no. 7 on 23 December, 1986. Since 1989, after the formation of
BAPEX as the national exploration company and thereafter exploration and production company, the company has continued
exploration and production activities and drilled 4 exploratory wells discovering gas at Shahbazpur, Saldanadi, Srikail and Sundalpur
13
 Petrobangla

In 1981 Shell Oil Company (Shell) was awarded the Chittagong Hill Tracts for petroleum exploration under PSC. Shell
conducted geological and seismic survey and drilled the Sitapahar well which was dry. Subsequently Shell undertook
exploration in the extreme north west of the country and drilled the first well in the area - the Salbanhat well which was
also dry. In 1988 Scimitar Exploration Limited was awarded another PSC of what is now block no. 13 in the Surma basin.
They failed to prove the extent of the oil discovery at Sylhet structure but discovered the Jalalabad gas field.
Formulation of National Energy Policy, 1996 and adoption of a model Production Sharing Contract (PSC) document
together with redefining the whole of Bangladesh territory into 23 exploration blocks ushered in a new phase of
exploration and development of oil and gas in the country. In the first stage under the new arrangement, 8 blocks were
awarded to 4 companies under PSC. Exploration and development activities in these blocks were rather limited and most
of the blocks were moderately covered by seismic surveys. A total of 11 exploration wells were drilled and 3 gas fields
were discovered in these blocks. These fields are Moulvibazar, Sangu (offshore) and Bibiyana. These 3 fields along with
Jalalabad gas field discovered by Scimitar Exploration Ltd. were developed under PSC and are currently in production. The
first 3D seismic survey of the country took place in Bibiyana during its appraisal. Bibiyana came under production in March,
2007. Another PSC bidding round during the late nineties culminated in awarding 4 more blocks. These were
SHELL/CAIRN/BAPEX in blocks no. 5 and 10, UNOCAL/BAPEX in block no. 7 and TULLOW/ CHEVRON/TAXACO/BAPEX in
block no. 9. Exploration activity was conducted in these blocks. Substantial activities were undertaken in block no. 9 only
where 5 exploration wells were drilled on the basis of seismic survey including 3D seismic discovering Bangura Gas Field.
The Offshore Bidding Round 2008 being limited to newly-formed deep water blocks, attracted some bids. However, the
ensuing maritime boundary dispute in most of the blocks created a stalemate. In this backdrop, two blocks were
negotiated with Conoco Phillips and a PSC for 2 blocks were signed in 2011. Conoco Phillips completed the initial seismic
survey in the blocks. They relinquished these blocks in 2014 without drilling any exploratory well.
After the resolution of the Maritime boundary dispute with Myanmar by virtue of the judgment awarded on 14 March, 2012 by
International Tribunal For The Law Of The Sea (ITLOS), the deep water blocks on the eastern part were rearranged. This is a
widely acclaimed achievement of the Government led by Hon`ble Prime Minister Sheikh Hasina. The Bangladesh Offshore Bid
Round 2012 was announced in December, 2012 and substantial initial response was received. Under this bid round, 3 shallow
water PSCs have been signed with ONGC Videsh, Oil India & BAPEX for blocks SS-04 and SS-09. and Santos, KrisEnergy and
BAPEX for block SS-11. One PSC for deep sea block DS-12 is going to be signed very shortly with POSCO DAEWOO
Corporation. Since the signing of the PSCs, several changes in ownership and restructuring in the contracts have taken place.
All of the onshore PSCs have matured from the exploration phase to the production phase and major areas of the blocks have
been relinquished. As of December, 2016 PSCs are active in production areas of blocks 12, 13 and 14 with Bibiyana, Jalalabad
and Moulvibazar Gas Fields operated by Chevron, and block 9 with Bangura Gas Field operated by Tullow.
Even though exploration history of oil and gas in Bangladesh goes back almost a century, exploration density could not be
enhanced as much it is required to convert domestic oil and gas resources into proven reserves. However, the exploration
success ratio is high as of about 1 in 3 wells. PSC explorations were also contributing to the enhancement of gas production. As
of December, 2016 out of 26 gas fields discovered, 20 were under production. Meanwhile, peak gas production per day crossed
the level of 2,700 MMSCFD by December, 2016. Despite increase in production, the rising demand could not be met and the gap
between supply and demand is widening. As such, the government has taken steps to import LNG and to implement massive
exploration programmes in both onshore and offshore areas to minimize the gap.

Minerals :
Petrobangla is also entrusted with mineral development in the
country. While the exploration part of minerals activity falls under
the charter of Geological Survey of Bangladesh (GSB), subsequent
development of economic deposits are undertaken by
Petrobangla. Mineral activities were part of the erstwhile
Bangladesh Mineral Exploration and Development Corporation
(BMEDC) till its merger with BOGMC. Petrobangla has developed
Annual Report 2016

2 underground mines, one for coal at Barapukuria which started

commercial production in September, 2005 and the other for
Granite at Maddhapara which went into commercial production in
May, 2007. Certain other extraction operation, like limestone,
white clay and boulder, are controlled by the government through
the Bureau of Mineral Development (BMD). Granite Mining by MGMCL

14
 Petrobangla

The activities of the Petrobangla group encompass the whole spectrum of

oil, gas and mineral sector of the country. The companies under
Petrobangla are involved in each of the stages from the drill bit to burner
tips. Through its companies, Petrobangla conducts geological and
geophysical exploration with the help of its own crew, drills exploration
and development wells with its own rig or with the help of hired
Activities contractors, processes raw gas to the pipeline specification, transports
of the processed gas through an increasing network of high-pressure
Petrobangla transmission lines and distributes gas to the customers, be it a large
power plant or fertilizer factory or a single household. Value added LPG
and liquid fuel such as Motor Spirit, Diesel, Kerosene etc. are extracted
from NGL and condensate which are by-products of gas. Compressed
Natural Gas (CNG) is extensively used in vehicles substituting for imported
liquid fuels. Furthermore, extraction of coal and granite are also conducted
by Petrobangla.

3D Seismic Survey by BAPEX

Exploration :
Geological: Geological survey has been carried out for Batchia formation in Moulovibazar district. With a total length of 22
lkm, this survey completed Baghachora section and partially completed Chomparechora and Kurmachora sections. The
team collected 10 rock samples and no sample gas/oil/water yet.

2D Seismic Survey : Under 2D seismic project of BAPEX, a total of 1289 lkm 2D seismic data have been acquired in Dhaka,
Manikgonj, Savar, Singair, Moulovibazar, Sylhet, Hobiganj, Sunamganj, Feni, Chittagong, Khagrachori, Jamalpur, Sherpur,
Munshiganj, Comilla areas, some potential seismic lead have been identified which demands in detail exploration activity
to keep up the growing demand of natural gas for the fast growing economic development of the country.
Annual Report 2016

3D Seismic Survey : A Project entitled “3D Seismic Project of BAPEX” has been initialled to conduct 1950 sq. km 3D
Seismic survey during December, 2012 to November, 2017 over Sunetro, Shahbazpur, Sundalpur-Begumganj, Srikail,
Narsingdi and Habiganj Gas Fields/Structures with an approved DPP cost of Tk. 1,825.00 million. During 2016 calendar
year, data acquisition of 419 sq. km over Sundalpur-Begumganj Gas Field and 200 sq. km over Narsingdi Gas Field area;
totaling 619 sq. km data acquisition was completed.
15
 Petrobangla

Drilling :
Mobarakpur-1 well : The drilling of Mobarakpur-1
well started on 22 August, 2014 using ZJ50DB
(Bijoy 12) rig. The preparatory works for
performing 2nd DST at Mobarakpur-1 well has
been continued. Prior to this, an agreement was
signed between Sinopec and BAPEX to integrate
BOP of 15000 PSI WP at Mobarakpur-1 well
which was required for the DST.
Shahbazpur-2 well : Rig padding and associated
tasks has been performed for the workover of
Shahbazpur-2 well.
Shahbazpur-4 well : The workover of
Shahbazpur-4 well has been carried out by IPS
rig which has been completed in October, 2016
and then gas flow started from the well
throughout the existing process plant.
Srikail-4 well : The drilling of Srikail-4 well
started on 15th February, 2016. Drilling was
done to the depth of 3,512 metres. As well as
subsequent DST and perforation was done as
per technical discussion. The well was handed
over to BAPEX on 10th May, 2016 and since
25th May, 2016 gas flow has been added to the
national grid at an amount of 10 million from the
Srikail-4 well.
Bangora-6 and 7 well : The drilling of Bangura-7
started on 4 September, 2016. Rig-down
performed on the 1st week of December, 2016.
Previously, an 8.625” casing has been run-in at
2,774 metres depth on October, 2016.
Bijoy Rig of BAPEX

Production :
In the FY 2015-16, total 973.2 BCF gas was produced in the country. Two major public sector gas production companies
Bangladesh Gas Fields Company Limited (BGFCL) and Sylhet Gas Fields Limited (SGFL), added 36.19% of total gas
produced during FY 2015-16. BAPEX was assigned with production activities in 2000. It produced 43.11 BCF gas in FY
2015-16. Total production of these 3 national companies stood 395.3 BCF which was 40.62% of total production of gas
during FY 2015-16. The remaining 577.92 BCF gas was produced by IOCs (Chevron and Tullow), which was 59.38% of total
production of gas during 2015-16.
Compared to the previous year, Chevron produced 17.12% higher while Tullow and BAPEX produced 4.72% lower and
8.40% higher amount of gas respectively, in FY 2015-16. BGFCL and SGFL maintained their production almost at the same
level of the previous year. The total production in FY 2015-16 stood at 973.2 BCF, averaging about 2,660 MMSCFD. Out
of this, BGFCL produced 298.27 BCF, SGFL 53.92 BCF, BAPEX 43.11 BCF, Chevron 541.15 BCF and Tullow 36.77 BCF. The
major gas producing fields of the companies under Petrobangla are : Titas Gas Field contributing 19.27%, Habiganj 8.46%,
Annual Report 2016

Kailashtila 2.69%, Rashidpur 2.19% and Fenchuganj 1.32%, whereas major producing fields under IOCs are : Bibiyana
contributing 44.25%, Jalalabad 9.78%, Moulvibazar 1.57% and Bangura 3.78% .
At the end of FY 2015-16, 20 gas fields were in production with 101 flowing wells. Out of these fields, 5 were operated
by BGFCL, 4 by SGFL, 7 by BAPEX, 3 by Chevron and 1 by Tullow.
During the period from July to December, 2016, Chevron and Tullow produced 273.48 BCF and 17.09 BCF gas respectively
while local companies produced 192.76 BCF gas, making total of 483.34 BCF.
16
 Petrobangla

Transmission :
Transportation of high pressure gas in the country is the responsibility of Gas Transmission Company Limited (GTCL). GTCL owns and
operates major gas transmission pipelines throughout the country. Gas transmission pipelines built by other companies before the
creation of GTCL have been integrated with the GTCL system. GTCL has undertaken a number of gas transmission pipeline
construction projects to ensure the transmission capacity; these include Monohordi-Dhanua and Elenga-East Bank of Jamuna Bridge
30" x 51 km gas transmission pipeline, Hatikumrul-Ishwardi-Bheramara 30" x 87 km gas transmission pipeline, Bonpara-Rajshahi
12" x 53 km gas transmission pipeline, Bheramara-Khulna 20" x 165 km gas transmission pipeline, Bakhrabad-Siddhirganj 30" x 60
km gas transmission pipeline, Ashuganj-Bakhrabad 30" x 61 km gas transmission pipeline, 24" x 7.5 km gas transmission pipeline
from Titas location no. 7 to A-B pipeline, Bibiyana-Dhanua 36" x 137 km gas transmission pipeline and Installation of Compressor
Stations at Ashuganj and Elenga by GTCL to enhance the gas transmission capacity. Among them, construction of 30" x 51 km
Monohordi-Dhanua and Elenga-East Bank of Jamuna Bridge gas transmission pipeline, Hatikumrul-Ishwardi-Bheramara gas
transmission pipeline, 12" x 53 km Bonpara-Rajshahi gas transmission pipeline, 36" x 137 km Bibiyana-Dhanua gas transmission
pipeline, 24" x 7.5 km gas transmission pipeline from Titas location no. 7 to A-B Pipeline, Srikail - A-B 1.5 km gas transmission pipeline,
Bheramara-Khulna 20" x 165 km gas transmission pipeline and Construction of 10" x 7.70 km Interconnection gas transmission
pipeline from Titas Gas Field (Location C-B-A) to Titas-A-B Pipeline Projects have already been completed.
Substantially completed projects by GTCL are : (i) Installation of Compressor Stations at Ashuganj and Elenga, (ii)
Hatikumrul-Bheramara 30" x 87 km gas transmission pipeline, (iii) 30" x 61 km Gas Transmission Capacity Expansion-Ashuganj
to Bakhrabad and (iv) Rehabilitation and expansion of existing Supervisory Control and Data Acquisition (SCADA) system of
national gas grid under GTCL (Component B of Bheramara Combined Cycle Power Plant Development Project).
Running projects are : (i) Moheshkhali-Anowara 30" x 91 km gas transmission pipeline. (ii) Dhanua-Elenga and Bangabandhu Bridge
West Bank-Nalka 30" x 66 km gas transmission pipeline. (iii) Sarail-Khatihata and Malihata-Khatihata 20" x 3.5 Km Gas Transmission
Pipeline Project. (iv) Anowara-Fouzdarhat 42" x 30 km gas transmission pipeline. (v) Moheshkhali-Anowara 42" x 79 km gas
transmission Parallel pipeline. (vi) Bakhrabad-Feni-Chittagong 30" x 181 km gas transmission Parallel pipeline. (vii) Construction of 30"
x 6.15 km Padma River Crossing gas transmission pipeline. (viii) Kutumbopur-Meghnaghat 24" x 45 km gas transmission pipeline.

Pipelines :
Gas pipeline network continued to expand both in transmission and distribution. In total about 285.84 km pipelines of various
sizes and grades were completed during the year 2015-16; these included 61 km transmission pipeline, 0.32 km distribution
pipelines, 200.31 km feeder main and service lines and 24.21 km others (customer financing) pipelines. As on June, 2016 the
gas pipeline network encompassed about 23,733.1 km comprising of about 2,536.26 km transmission lines, 2,371.8 km
distribution lines, 16,609.52 km feeder main and service lines and the rest 2001.95 km other (customer financing) lines.
As in December, 2016 the pipeline network increased to about 23,750.43 km, which included about 2,550.58 km
transmission lines, 2,372.04 km distribution lines, 16,609.9 km feeder main and service lines and the rest 2,004.34 km
pipelines constructed under customer financing.

Annual Report 2016

Padma river crossing by GTCL

17
 Petrobangla

Gas Transmission
Network In Bangladesh
Annual Report 2016

18
 Petrobangla

Distribution :
Six marketing or distribution companies under Petrobangla are entrusted with the responsibility of marketing of natural
gas to the customers varying from large power and fertilizer plants to small households. These companies are : (1) Titas
Gas Transmission and Distribution Company Limited (TGTDCL), (2) Bakhrabad Gas Distribution Company Limited (BGDCL),
(3) Jalalabad Gas Transmission and Distribution System Limited (JGTDSL), (4) Paschimanchal Gas Company Limited (PGCL),
(5) Karnaphuli Gas Distribution Company Limited (KGDCL) and (6) Sundarban Gas Company Limited (SGCL). Each company
has its own marketing franchise area, covered by a fairly extensive distribution network. Among these marketing
companies, Sundarban Gas Company Limited is the youngest one, which has started its operation in Bhola.
The total gas sales of the aforesaid six marketing companies in operation during this financial year was about 966.9 BCF,
of which TGTDCL, being the largest shared about 60.5%, followed by BGDCL 14.1%, KGDCL 10.3%, JGTDSL 9.9%, PGCL 4.2%
and SGCL 1.1%. Gas sector catered to 3.44 million customers under various categories as in June, 2016 which rose to 3.48
million at the end of December, 2016. Most of these customers are of domestic category.

Condensate and Natural Gas Liquids

(NGL) :
Some of the gas fields located in north-eastern part of
Bangladesh contain high concentration of liquid
hydrocarbon. Production of value added finished
petroleum products from this liquid hydrocarbon or
condensate is becoming a growing activity. With the
introduction of Liquid Recovery Unit (LRU),
condensate production from Bibiyana Gas Field has
been increased from 5,500 barrels/day to 9,500
barrels/day. Apart from the fractionating condensate
from national fields in fractionation plants installed at
different gas fields, Rashidpur Condensate
Fractionation Plant with a capacity of 3,750
barrels/day is producing petrol, diesel and kerosene by
fractionating the condensate received from Bibiyana
Gas Field. During 2015-16, a total of 543,298 barrels
of condensate was produced by SGFL, BGFCL and
BAPEX and 3,641,190 barrels by IOCs as a by-product
of gas. During the same period, SGFL extracted
162,051 barrels of NGL from the gas processed in its
Mole-Sieve Turbo Expander plant at Kailashtila. On the
other hand, a total of 558,162 barrels of petrol,
349,674 barrels of diesel and 102,314 barrels of
kerosene was produced by fractionating the
condensate at the fractionation plants located at
different fields of SGFL, BGFCL and RPGCL.
Condensate delivery at Ashuganj by RPGCL

CNG and LPG :

Rupantarita Prakritik Gas Company Limited (RPGCL), a company under Petrobangla, has been entrusted with the
functions to manage, supervise and co-ordinate the use of CNG in Bangladesh. The extensive use of CNG has been playing
Annual Report 2016

an important role in reducing our dependence on imported liquid fuel for use in vehicles. Approximately 3.53 BCF of CNG
is used every month from 554 CNG stations, which is about 5% of the total gas consumption in the country. Consequently,
the Government has been able to save about Tk. 11,170.0 million per month as foreign exchange in the sector against fuel
import. With a view to curbing the import along with production of pollution-free fuel and to maximize the utilization of
NGL obtained from the gas fields, the company also produced 6,080 metric tons of LPG by processing NGL in its
fractionation plants (Plant-1 and 2) at Kailashtila in Sylhet in 2015-16.
19
 Petrobangla

Liquefied Natural Gas (LNG) :

Terminal Use Agreements (TUA) signing with Excelerate Energy Bangladesh Limited

Present supply from existing gas fields is about 2750 MMSCFD against connected demand of about 3400 MMSCFD. This
demand may be increased up to 4500 MMSCFD in the year 2021/22, widening the shortfall between demand and supply.
To minimize the demand-supply gap, the Government has invigorated its effort to enhance gas production along with
initiatives to import considerable quantity of LNG. Two Terminal Use Agreements (TUA) have been signed with Excelerate
Energy Bangladesh Limited and Summit LNG Terminal Co. (Pvt.) Ltd. to install 2 Floating Storage and Re-gasification Unit
(FSRU) at Moheshkhali approximately 90 kilometers south of Chittagong for supplying 500 MMSCFD of LNG each and
expected to commission by April and October 2018 respectively. A Sales Purchase Agreement (SPA) has been initialed
with RasGas of Qatar for supplying LNG. Construction of 30” x 91 km transmission pipeline from Moheshkhali to Anowara
in Chittagong has already been completed. In addition, Petrobangla has started initial activities to install 2 land based LNG
terminals, one at Moheshkhali and the other at Paira port area. Each of these two terminals will have a capacity of
handling LNG equivalent to
1,000 MMSCFD of gas and a
techno-economic feasibility
study is underway for
installation of these two
terminals. Other than these,
Memorandum of
Understandings (MoU)/Term
Sheets have been signed with
Annual Report 2016

few institutions with the

object of installation of Land
Based, Fixed Jetty Based and
Gravifloat LNG Terminals and
initial survey activities have
been carried out.

20
 Petrobangla

Mining :
Petrobangla is also entrusted to develop mineral resources in the country. As the pioneer in subsurface mining in the
country, Petrobangla has developed a coal mine at Barapukuria and a granite mine at Maddhapara of Dinajpur District
from which commercial production have been going on. The country's only granite mining company "Maddhapara Granite
Mining Company Ltd." at Dinajpur has been extracting granite which is used mostly as construction material.

Coal Stock Yeard of BCMCL

Coal :
At present, natural gas accounts for about three-fourths of the commercial energy used in the country. Excessive
dependence on natural gas has contributed to sharp growth in its demand. But gas is depleting very fast. Given the
uncertainty of sustainable supply of natural gas, it is imperative to diversify the primary energy sources in the country. And
coal can be a major source of primary energy supply in this country in future. Five coal fields have been discovered with
estimated reserve of more than 3 billion tones, out of which Petrobangla has developed the first coal mine of the country
at Barapukuria. At present, Barapukuria coal mine is producing approximately 4000-5000 metric tons daily. In the FY
2015-16, total 1,021,638 metric tons of coal was produced from this mine. The coal extracted from this mine is mainly
used to fuel the only coal fired 250 MW power generation plant in the country located at Barapukuria. The remainder is
used in brick fields, boiler industry, steel re-rolling mills, etc. With the objective of enhancing present production, various
initiatives are underway which include feasibility study for extension of existing underground mining operation of
Barapukuria Coal Mine towards the southern and the northern side of the basin without interrupting the present
production, phase-2 feasibility study for development of Dighipara Coal Field at Dighipara, Dinajpur. Petrobangla has
already implemented a 2D seismic survey for feasibility study of coal deposit at Dighipara under phase-1 and coal reserve
has been estimated at 865 million metric tons. Furthermore, in an effort to diversify the current energy mix and partially
resist deforestation and also to exploit a viable non-conventional source of energy, Petrobangla conducted feasibility
study for the extraction of Coal Bed Methane (CBM) at Jamalganj coal field by drilling slim bore-hole and testing of the coal
sample under the Consultancy Services. The study has revealed that in situ Gas content is invariably very low, 0.36 cc/gm
to 1.7 cc/gm and total Gas-in place estimated for an area of 64.42 sq km of the Coal field is 4.99 BCM or 176.27 MMcf.
Because of extreme gas under-saturation CBM production is not commercially viable. The study has established huge in
place coal resource 5.45 Bt within the study area of 64.42 sq km. The coals occur at depth of 600 to 1050m.
Presently, the Government has been putting efforts to finalize a coal policy wherein the strategies and rules of coal
extraction will be spelled out. It is expected that the upcoming coal policy will help achieve the targets and take appropriate
Annual Report 2016

steps for developing the prospective coal sector.

Granite :
Maddhapara Granite Mining Company Limited (MGMCL) at Dinajpur, the only underground mining company of this kind in
the world, has been extracting granite which is used mostly as construction material. During the FY 2015-16, total
1,53,719.00 metric tons of granite was extracted from the mine and 6,25,831.00 metric tons was sold.
21
 Petrobangla

Gas Production
in
Bangladesh
Total Production upto December, 2016 was 14.24 TCF
Gas in BCF

1000.0 973.2
900.0 892.2

800.0 800.6 820.4

743.7
700.0 703.6 708.9
653.8
600.0 600.9
562.2
527.0 483.34
500.0 452.8 486.8
421.2
400.0 372.2 391.5
300.0
200.0
100.0
0.0
1

16
-0

-0

-0

-0

-0

-0

-0

-0

-0

-1

-1

-1

-1

-1

-1

-1
Year

c-
09

10
00

01

02

03

04

05

06

07

08

11

12

13

14

15

De
20

20
20

20

20

20

20

20

20

20

20

20

20

20

20

20

to
Up
Marketing :
In keeping with the increased production, gas sales also showed an upward trend. By the end of 2015-16
financial year, total sales was 966.9 BCF, of which power sector (Grid + Non-Grid) consumed the largest
part amounting to 399.6 BCF followed by fertilizer sector 52.6 BCF, captive power 160.8 BCF, industry
156 BCF, domestic sector 141.5 BCF, and other non-bulk sectors 56.4 BCF. As in December, 2016 gas
sector catered to more than 3.47 million customers of various categories. Most of this customers fall
under domestic category; however, power sector remained the largest consumer.

Domestic Commercial CNG

14.63% 0.93% 4.81%

Tea
Sector-wise 0.09%
Gas Consumption Power
41.33%
(2015-16)
Annual Report 2016

Industries
16.13%
Fertilizer Captive
5.44% 16.63%
22
 Petrobangla

Financial :
The gross income in the FY 2015-16 by Petrobangla group from sales of gas, gas derived liquids, coal and granite stood
at Tk. 3,46,282.40 million. After paying Supplementary Duty (SD) and VAT, net income was Tk. 3,13,914.77 million. Gross
expenses, comprising of Tk. 32,367.63 million as SD and VAT along with Tk. 3,14,768.47 million as cost of sales,
amounted to Tk. 3,47,136.10 million. After paying income tax, net profit stood at Tk. 1,672.18 million. And after paying
dividend of Tk. 7,940.23 million, net profit/(loss) turned out to be Tk. (6,268.05) million.

Payment to
National Exchequer
Taka in Million
80,000
75,215.7
75,000

62042.5
70,000

65,000

55865.8

53779.4
60,000

55,000

45383.3
50,000

41682.0
39601.3
45,000
32630.3

40,000
29453.9
28115.0

28025.4

35,000
27288.8
25708.0
22613.7

30,000

25,000
16337.3
15846.7
14259.2

20,000

15,000

10,000

5,000

0
0

08

10

11

6
-0

-0

-0

-0

-0

-0

-0

-0

-0

-1

-1

-1

-1

-1
-

-
99

00

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15
19

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

Innovation Programme :
In order to provide better service to the people through establishing transparency and to ensure good governance in the
Annual Report 2016

public administration, Government has undertaken innovation programme. Pursuant to the government’s circular in 2013,
Petrobangla and its companies have already formed innovation teams. They are performing their assigned duties. In terms
of “Innovative Action Plan and Assessment Guideline-2015” of Cabinet Division, Petrobangla has prepared an Annual
Innovation Work Plan for the calendar year 2016 with the aim of making easier the way of serving citizen and to make
qualitative change in working process. In line with this Work Plan-2016, Petrobangla has implemented the three
innovative ideas which are: (a) Online Gas Bill Payment System; (b) Hotline Service and (c) CNG Auto Billing system.
23
 Petrobangla

Energy Efficiency :
Petrobangla has implemented a TA project namely "TA to Review the Approach for Increasing the Efficiency of Gas
Utilization in Certain Major Users" under JDCF financing for identifying opportunities to increase gas utilization efficiency of
major users such as fertilizer industries, captive power plants, glass industries, steel re-rolling mill and other industrial
establishments that use boilers through consultancy services.
Findings of the pilot programs : (i) Boiler Economiser Pilot Program (to fit an economiser to exhaust of the boiler to recover
waste heat for heating the boiler feed water): gas consumption has been reduced by 4.4%. (ii) Generator Jacket Water Pilot
Program (to recover heat from the generator jacket water for use as process heat): gas consumption has been reduced by
14.4%. (iii) Reheating Furnace Recuperator Pilot Program (to install a recuperator to the exhaust of the furnace to pre-heat
the combustion air) : gas consumption has been reduced by 9.10%. Excess air has been controlled by installing a butterfly
damper at chimney. Excess air as well as oxygen controlled by these two dampers as a result furnace losses scale reduced
significantly. Reduction of scale loss gives a dramatic result i.e. gas consumption was reduced by 35%.
The potential natural gas savings and Greenhouse Gas (GHG) emission reductions that could be achieved if the EMOs
proposed by the consultants are implemented.

Potential Gas Savings and Carbon Emissions Reduction

From Audited Industries Nationwide projection
Possible Potential Gas Carbon
Energy Savings to Total Gas savings Emission
Management Annual Gas Consumption consumption
savings reduction
Opportunities Ratio of Gas (MMSCFD) (MMSCFD) % (Ton/year)
(MMSCF)
Industrial
664 0.17 350 58 17 1,172,254
Boilers
Captive
Generator 1054 0.50 444 224 50 4,167,538

Re-heating
202 0.18 22 4 18 11,172
Furnace
Total 816 286 5,350,964

Petrobangla proposed to include the

EMOs suggested by the consultants in
the Energy Efficiency and Conservation
Master Plan to be prepared by Power
Division to improve industrial boiler
efficiency, captive power generator and
industrial furnace as well as ensure
energy conservation.
Furthermore, Petrobangla has set up
standard for gas utilization efficiency for
industrial plants using appliances i.e.
boiler, captive power generator and
industrial furnace and also given
Annual Report 2016

directives to its gas distribution

companies to maintain the standard. The
findings of the pilot programs are being
implemented by the distribution
companies of Petrobangla.
Economizer to exhaust of the boiler to recover waste heat for heating the boiler feed water
24
 Petrobangla

Annual Performance Agreement (APA) :

Government of Bangladesh has introduced Government Performance Management System (GPMS) for ensuring
assessment of performance from qualitative to quantitative figures in the public sector. Under this programme, Annual
Performance Agreement (APA) system has been initiated. APA between EMRD and Petrobangla, and between
Petrobangla and its companies are being signed every FY. Regarding APA in the FY 2015-16, Petrobangla's achievement
was 89.14%. APA for the FY 2016-17 was signed between EMRD and Petrobangla on 27 June, 2016, while between
Petrobangla and its companies on 30 June, 2016. A Director of Petrobangla has been assigned as the focal point for
monitoring APA properly, and for necessary communication with EMRD and its companies. Report of achievement against
APA is sent to EMRD on monthly, quarterly, half-yearly and yearly basis.

Petrobangla signed APA with its companies on 30 June, 2016.

Right to Information :
To make provisions for ensuring transparency and accountability in all public, autonomous and statutory organizations and
in other private institutions constituted or run by government or foreign financing, the Parliament of the People's Republic
of Bangladesh passed the 'Right to Information Act, 2009 on 27 March, 2009. To ensure the effective implementation of
the Act, the Government has already formulated rules and regulations regarding preservation of information, publication
of information, disclosure of information and access to information. According to Right To Information (RTI) Act,
Petrobangla has specifically designated an officer.

National Integrity Strategy :

Annual Report 2016

As per government's decision and to implement national integrity strategy at the corporation level, time bound action plan
from October, 2016 to June, 2017 has been prepared. A Committee has been formed to implement National Integrity
Strategy in the Corporation. Time bound action plan report was sent to EMRD on 9 July, 2017. An officer has been
appointed as focal point for implementation of National Integrity Strategy. Major portion of the time bound action plan has
already been implemented.

25
 Petrobangla

Human Resources Development :

As a part of the continuing efforts to upgrade its manpower resources to meet the changing need of the industry,
Petrobangla and its companies pursue skill development and diversification programmes on a regular basis. Apart from
conventional training opportunities for job-specific subjects, new areas of specialization are being inducted to cater to a
new milieu of activity. In view of gradual deregulation of certain aspects of gas industry, introduction of private venture as
sole or joint collaboration, taxation regime, tariff mechanism and overall reinvigoration of the sector, regular and frequent
participations are ensured by the widest possible selection of personnel in various training, workshops and seminars.
During the FY 2015-16, Petrobangla group arranged foreign training of different durations and disciplines for 493 personnel, while
25 participants were sent for attending seminars, 15 for attending workshops, 9 for attending conference, 42 for inspections and
9 for attending meetings. During the same period, local training was imparted to 131 personnel, while 26 were sent for attending
seminars, 6 in workshops, 8 in summits, 13 in conventions, 3 in road shows and 7 in internships held in the country.
Petrobangla has implemented e-tendering procedure for inviting bid and going to introduce e-filing system with Access to
Information (a2i). Petrobangla has also undertaken an initiative to develop an ERP system to digitalize and automate all
levels of system. Petrocentre, the head office complex has already been under LAN and Wi-Fi connection to ensure
internet based activities. Petrobangla is now connected in video-conferencing system of Bangla Govt. Net and taken a
plan to establish video-conferencing system to the companies of Petrobangla. Website of Petrobangla is now in both
Bangla and English version and Petrobangla monitors its company’s website either the information of websites is updated
or not. Petrobangla also maintain a mail server to ensure authentic and digital communication. Some previous applications
like Human Resource Information System (HRIS) introduced in the early of 2008, Unified Material Code (UMC) is obsolete
so the systems will be included in the ERP system. Beside this Petrobangla and its companies trying to develop some
e-services to ensure that the stakeholder avail it smoothly. To increase the surveillance system Petrobangla is going to
establish IP (Internet Protocol) camera system.

Farewell of two officials before their going to PRL.

Grievance Redress System (GRS) :

Annual Report 2016

Grievance Redress System (GRS) provides a way to reduce risk for public service delivery, an effective avenue for
expressing concerns and achieving remedies for public, and promote a mutually constructive relationship. The aim of GRS
is to develop a range of procedures to facilitate airing, and resolution of grievances in a non-threatening, supportive
environment. Under the Government Performance Management System, Energy and Mineral Resources Division and
Petrobangla have signed an Annual Performance Agreement (APA), which includes grievance redress system. An officer
has been appointed as focal point for implementation of grievance redress system in Petrobangla. Activities of
Petrobangla and its subsidiaries under GRS are being regularly monitored and evaluated.
26
 Petrobangla

Production Sharing Contracts (PSC) :

Under its charter, Petrobangla has the right to enter into petroleum agreements with any International Oil Company (IOC)
for the purpose of any petroleum operations. One of Petrobangla's major activities consists of organizing, supervising and
administering the Production Sharing Contracts (PSC) it enters into with the IOCs. Major block bidding and awards took
place under the 1974 offshore bidding round, 1993 bidding round, 1997 bidding round, 2008 offshore bidding round and
2012 offshore bidding round.

1974 Offshore Bidding Round

Bidding was limited to near offshore areas and 6 of the then 7 offshore blocks were contracted with the following IOCs :
• Atlantic Richfield (ARCO);
• Ashland Oil;
• Union Oil;
• Canadian Superior;
• BODC (JNOC/JAPEX JV); and
• Naftaplin (Yugoslav oil company INA).
These companies conducted 31,069 km of marine seismic surveys, drilled 7 wells, discovered the Kutubdia Gas Field in
1977 and all winded up by 1978.

PSCs in the 1980s

In the interim, 3 PSCs were concluded. Of these, 2 PSCs were concluded with Shell Oil Company for the Chittagong Hill
Tracts (later Block 22) and North West Bangladesh (later block 23). Shell conducted seismic surveys, and drilled 2 wells at
Sitapahar and Salbanhat without any success, and relinquished their concessions. One PSC was concluded with Scimitar
Exploration of Canada for exploration of oil in the Surma basin (the area later became Block 13). Scimitar only discovered
gas in the Jalalabad field and relinquished the field.

1993 Bidding Round

At that time, 23 onshore and offshore blocks were offered. Of these, 8 blocks were awarded to the following 4 IOCs :
• Occidental (OXY) for blocks 12, 13 and 14 (Onshore); later transferred to Chevron which is producing from
Bibiyana, Jalalabad and Moulvibazar fields;
• Cairn Energy for blocks 15 (Onshore) and 16 (Offshore); Cairn discovered Sangu gas field in 1996 which produced
until 2013. Blocks 15 and 16 have now been relinquished, except for the ring-fenced offshore Magnama
structure which was transferred to Santos;
• Oakland-Rexwood for blocks 17 and 18 (Offshore); transferred to CFP Total which has relinquished both blocks;
• United Meridian Corporation (UMC) for block 22 (Onshore); relinquished;
• Exploration ring-fenced of block 16 (Magnama ring-fence) is operated by Santos. Drilling operation is scheduled
to take place in 2015.

1997 Bidding Round

4 blocks were awarded as follows :
• Tullow/Chevron/Texaco/BAPEX for block 9 (Onshore);
• Shell/Cairn/BAPEX for blocks 5 and 10 (Onshore); relinquished in totality; and
• Unocal/BAPEX for Block 7 (Onshore); relinquished in totality.
During this bidding round, the provision for a mandatory 10% carried interest for BAPEX was introduced and implemented
Annual Report 2016

for all blocks.

2008 Bidding Round

It attracted some bids, but the ensuing maritime boundary dispute with Myanmar in most of the blocks created a stalemate.
However, the Government succeeded in signing a PSC for 2 deep sea blocks on 16 June, 2011 with ConocoPhillips for DS-10 and
DS-11. ConocoPhillips conducted total 5,750 lkm of 2D seismic survey in 2012 and 2013. After interpretation, ConocoPhillips
identified few prospects. However, ConocoPhillips relinquished the blocks considering their investment not feasible.
27
 Petrobangla

2012 Offshore Bidding Round

Following the delimitation of the maritime boundary between Bangladesh and Myanmar by ITLOS in March, 2012,
Petrobangla reshaped the blocks considering the new boundaries and announced a bidding round in December, 2012.
a) Shallow Water Bids :
Under this round, the following 3 shallow water PSCs have been signed :
• ONGC Videsh Ltd. (OVL), Oil India Ltd. (OIL) and BAPEX for blocks SS-04 and SS-09; and
• Santos, KrisEnergy and BAPEX for block SS-11.
b) Deep Water Bid :
3 proposals were received for blocks DS-12, 16 and 21 Joinly from ConocoPhillips & Statoil. However, no PSC
was signed for any deep sea block under this bidding round as they asked to improve the terms and condition
of the Model PSC.

Operating Fields under PSC in 2015-16

Currently, 4 gas fields are being operated by IOCs under PSC. Of them 3 fields, namely Bibiyana, Jalalabad and Moulvibazar
Gas Fields are being operated by Chevron and Bangora Gas Field by Tullow/KrisEnergy.
Bibiyana : Bibiyana field is now the largest supplier of gas to the national grid, delivering around 1,200 MMSCFD gas and
9,500 bbl/day condensate from 26 wells. The design capacity of the process plant is 1,350 MMSCFD.
Jalalabad : Jalalabad Gas Field has 7 wells including 3 additional new wells drilled at 2015. Currently, total production from
this field is around 270 MMSCFD gas and 2,000 bbl/day condensate.
Moulvibazar : Moulvibazar is producing 40 MMSCFD (down from 110 MMSCFD) from 6 wells while the installed process
plant capacity is 125 MMSCFD. As production is now declining, the operator is investigating ways to enhance or at least
sustain present rate of production.
Bangura : The Bangora field started producing in 2006, peaking at 120 MMSCFD in 2010 and thereafter declining to 100
MMSCFD from 4 wells. 2 development wells have beeen planned to drill. to sustain the current rate of production. In
December 2016 one well has been drilled successfully.
PSCs have resulted in addition of significant sources and supplies of gas in the country. Productions from the PSC blocks
have increased significantly over the last few years. The total gas production from the PSC operations during FY 2015-16
was 582 BCF together with 3,390,056 barrels of associated condensate. Since the beginning of PSC operations in
Bangladesh in the 1970s, a total of 27 exploration wells have been drilled resulting in the discovery of 6 gas fields.
Annual Report 2016

Bibiyana Gas Field

28
 Petrobangla

Bangura Gas Field

Preparation for future Offshore Bidding Round :

Bangladesh's maritime victory over Myanmar and India have opened the door to immense possibilities for the nation. Our
neighbours are already exploiting their subsea energy resources with rich dividends. High investments are required for
deep sea exploration and production and countries successful in attracting foreign investments for offshore exploration
have been quick to recognize, address and accommodate this issue in their model PSC offerings. We have to make it
attractive for IOCs to explore in our waters. Only intensive offshore exploration activity can enable Bangladesh to tap the
huge reservoirs of riches trapped beneath our seas. To achieve these objectives up gradation of model PSC is in progress.

Current and upcoming exploration activities :

Initial exploration activities are in progress in blocks SS-04 and SS-09. In the 1st phase ONGC Videsh Ltd.(OVL) has
completed 3,008 lkm of 2D marine seismic survey data acquisition. In the 2nd phase OVL will carry out 2542 lkm 2D OBC
survey. As on December 2016 OVL completed about 500 lkm survey. By January 2019 OVL will drill 1 exploratory well in
block SS-04 and 2 exploratory wells in block SS-09.
In block SS-11 Santos conducted 3,050 line kilometers of 2D seismic survey in 2015 Interpretation and integration of the
data sets have been completed and submitted the report to Petrobangla in the first quarter of 2016. They are going to
conduct 300 sq. kilo meters of 3D seismic survey in the 3rd quarter 2017. By February 2019 Santos will drill 1 exploratory
well in block SS-11.
Petrobangla has planned to undertake 2D Non-Exclusive Multi-Client Seismic Survey in the offshore area of Bangladesh.
The objective of the survey is to provide oil and gas industry with 2D Non-Exclusive Multi-Client Seismic data of the
offshore areas in order to help with basin evaluation, prospect generation and robust bid round participation. Bids have
been invited, received and evaluated. Government approval is now awaiting for signing the contract with successful bidder.
The GOB has given the highest emphasis on rapid industrialization and modernization of the country. Implementation of
Annual Report 2016

this program requires increased supply of commercial energy. Accordingly, under the Special Act for speedy gas supply one
PSC for deep sea block DS-12 is going to be signed shortly with POSCO DAEWOO Corporation. Initially they will carryout
1800 lkm 2D seismic survey. Depending upon the outcome of the survey Daewoo will conduct 1000 Sq.km. 3D seismic
survey and drill one exploratory well.
Very recently national exploration company Bapex has taken over 49% of rights of Santos Bangladesh Ltd's block 16
Magnama stake under PSC. Jointly Bapex and Santos have started to drill Magnama-2 exploratory well.
29
 Petrobangla

Bangladesh
Block Map, 2016
Annual Report 2016

30
 Petrobangla

Over the years, the activities of Petrobangla has expanded and diversified to a great
Companies extent. To manage these activities, specialized companies are operating to achieve
of specific objectives. Currently, there are 13 companies operating under Petrobangla,
Petrobangla dealing in oil and gas exploration, production, transmission, distribution, conversion
and promotion of LNG as well as development and marketing of coal and granite.

PETROBANGLA

EXP. & PROD. TRANSMISSION DISTRIBUTION CNG & LPG MINING

BGDCL

Annual Report 2016

31
 Petrobangla

Bangladesh Petroleum Exploration and

Production Company Limited (BAPEX)
BAPEX was established in 1989, as the national exploration company by abolishing the
Exploration Directorate of Petrobangla with a view to accelerating oil and gas exploration in
the country. The main functions of BAPEX were to undertake geological and geophysical
surveys, and drilling operations for the purpose of exploring oil and gas in the country. The
work of exploring oil and gas in the public sector, now undertaken by BAPEX, was originally
initiated in 1964 under the aegis of the then OGDC of Pakistan. After independence in 1971,
exploration works were conducted by OGDC (Bangladesh) and Oil Exploration (Toilo
Sandhani) till 1974 and continued under Exploration Directorate of BOGMC (Petrobangla) for
the next 15 years, after which, in 1989, BAPEX emerged as a company. Its objective was to
undertake exploration works for oil and gas within the country. In 2000, the Government
granted BAPEX the permission to go into production aside from exploration activities to
increase its financial capability. At present, BAPEX is running its production in addition to
continuing the activities of exploring oil and gas onshore within the country.
Participating in an international open tender, BAPEX obtained a contract for drilling
Bangora- 6 and 7 development wells which fall under KrisEnergy-the operator of PSC block
9. The final contract was signed on 26 November, 2015. In the mean time BAPEX has
completed a workover programme at Bangura well-7. Aside from exploring oil and gas and
drilling, BAPEX is now producing nearly 105 million cft of gas daily from Saldanadi,
Shahbazpur, Fenchuganj, Semutang, Begumganj, Shahjadpur-Sundalpur and Srikail Gas
Fields. Another gas field at Rupganj which is ready to go on production as soon as Titas Gas
Transmission and Distribution Company Limited (TGTDCL) completes their setup of
transmission pipeline.
BAPEX has drilled 8 exploratory wells, out of which 5 gas fields have been discovered. Since
its inception, BAPEX has successfully completed work-over operations of 27wells, drilling of
8 exploration wells and 21 development wells. Experience of exploring oil and gas gathered
over a period of 27 years has enhanced the technical capacity of BAPEX. New gas reserves
to be explored through the ongoing drilling works will help implement the Vision 2021 by
mitigating the energy crisis of the country.
Under Bangladesh Offshore Bidding Round, 2012, 2 production sharing contracts (PSCs)
have been concluded with ONGC Videsh Ltd. (OVL) and Oil India Ltd. (OIL) for shallow-sea
blocks SS-4 and SS-9, and 1 PSC with Santos Sangu Field Ltd. and KrisEnergy Bangladesh
Ltd. for shallow-sea block SS-11. The Government of Bangladesh has nominated BAPEX as
stakeholder carrying 10 percent interests for these blocks. A joint operating agreement was
signed with Santos Sangu Field Ltd and KrisEnergy Bangladesh Ltd on 18 June, 2015 to
create an opportunity for BAPEX to participate in offshore gas blocks. And signing of a joint
operating agreement with ONGC Videsh Ltd. (OVL) and Oil India Ltd. (OIL) is in the offing.
During the FY 2015-16, total income of BAPEX stood at Tk. 2,995.39 million, of which Tk.
1,185.17 million (excluding SD and VAT) earned from sales of natural gas and condensate of
own gas fields, Tk. 538.20 million received from different gas marketing companies of
Petrobangla as ''BAPEX Margin'' on gas sales and Tk. 1,272.02 million earned from PSC
Block-9, interest income and income from other sources. Against this income, total
Annual Report 2016

expenditure stood at Tk. 3,554.80 million during the year. The net loss after tax of the
Company stood at Tk. 579.23 million. During the FY, the revenue reserve stood at Tk.
2,137.14 million after prior years adjustment of Tk 7.94 million and transfer to profit and
loss appropriation account accumulated revenue of Tk. 2,724.31 million. The Company paid
Tk. 2,884.5 million to the Government Exchequer during FY 2015-16. The company has
already established e-tendering procedure for inviting bid.

32
 Petrobangla

Considering its overall activities, for BAPEX, 2015-16 fiscal was a year of making efforts for achieving success overcoming
the setbacks. BAPEX has formulated a time-bound action plan with a view to accelerating the exploration of oil and gas
and augmenting production by 2021. The overall support and cooperation of the present Government for turning BAPEX
into a technically and financially strong institution will continue to add momentum to its operation in the days ahead and
help reach its target.

Vision 2021 of BAPEX :

Hon’ble Prime Minister of the People’s Republic of Bangladesh, during her visit to Ministry of Power, Energy and Mineral
Resources on 6 February, 2014 and 9 April, 2015 expressed her deep interest in strengthening of BAPEX, the only
state-owned petroleum exploration company, to trim down the dependence on IOCs. To materialize this objective, she
instructed to take a strategy of time-bound action plan.
Pursuant to the Hon’ble Prime Minister’s instruction, BAPEX has undertaken the following work-plan to reach the goal of
Vision 2021:
• BAPEX will conduct 3,000 lkm 2D seismic survey under proposed project named “Block 8 and 11 Regional 2D
Seismic Survey Program” within July, 2016 to June, 2019;
• Drilling of 53 exploratory wells, 35 development wells and workover/remedial of 20 wells (a total of 108 wells)
within July, 2015 to June, 2021; and
• To strengthening BAPEX and to implement the above work-plan employment of consultants and experts of
different relevant fields on contractual basis is under active consideration.
Completed Projects during FY 2015-16 are : Procurement of Silica Gel Type gas process plant for Srikail gas field;
Srikail-4 Appraisal cum Development well drilling project; Mobarakpur Oil/Gas exploration well drilling project; Salda-3 and
4 and Fenchuganj-4 and 5 gas field development project; Rehabilitation project for IDECO Rig engine mud tank and
electrical power system; Procurement of TEG Type gas process plant for Shahbazpur gas field.
On-going Projects during FY 2015-16 are : 3D Seismic Project of BAPEX; 2D Seismic Project of BAPEX; Shahzadpur-Sundalpur
(Sundalpur-2) Appraisal/Development Well Drilling Project; Rupkolpo-1 Drilling Project: 3 Exploration wells (Srikail East-1, Salda
North-1 and Hararganj-1) and 2 Development wells (Srikail North-2 and Koshba-2); Rupkolpo-2 Drilling Project: 4 Exploration
wells (Salda South-1, Semutang South-1, Batchia-1 and Salda East-1); Rupkolpo-3 Drilling Project: 4 Exploration wells
(Koshba-1, Madarganj-1, Jamalpur-1 and Shoilokupa-1); Rupkolpo-4 Drilling Project: 2 Exploration wells (Shahbazpur East-1,
Bhola North-1) and 2 Workover wells (Shahbazpur-1 and 2); Procurement of 1 drilling and 1 workover rig with supporting
equipment for BAPEX.

Annual Report 2016

3D Drilling by BAPEX
33
 Petrobangla

Bangladesh Gas Fields Company Limited (BGFCL)

Bangladesh Gas Fields Company Limited (BGFCL) is the largest state-owned natural gas production
company in the country. After independence of Bangladesh, on a far-sighted decision of the Father of the
Nation Bangabandhu Sheikh Mujibur Rahman, 5 gas fields of the erstwhile Pakistan Shell Oil Company
Limited (PSOC), namely Rashidpur, Kailashtila, Titas, Habiganj and Bakhrabad were brought under state
ownership on 9 August, 1975 by purchasing at a minimal price. Accordingly, Shell Oil Company was
renamed as Bangladesh Gas Fields Company Limited and management of Titas, Habiganj and
Bakhrabad was entrusted to BGFCL. It is a public limited company registered under Companies Act, 1994
(Revised) and also is a company of Bangladesh Oil, Gas and Mineral Corporation (Petrobangla). The
company is currently contributing more than 31% of total gas production of the country. Presently, this
company owns 6 gas fields - Titas, Habiganj, Bakhrabad, Narsingdi, Meghna and Kamta.
BGFCL continued gas production from 5 gas fields out of its 6 fields in the FY 2015-16. At present, daily
maximum 817.17 million cubic feet gas is being supplied to the national grid from 38 wells of 5
producing fields. BGFCL shares about 30.7% of country's total gas production. During 2015-16 FY,
298.27 BCF of gas and 169,816 barrels of condensate, extracted as by-product from the gas, were
produced by the company. There are 2 fractionation plants at Titas Gas Field and 1 at Bakhrabad Gas
Field. The recovered condensate from Titas, Habiganj and Narsingdi Gas Fields of BGFCL and Beanibazar
Gas Field of SGFL are fractionated into MS (Petrol) and HSD (Diesel) in 2 fractionation plants of Titas Gas
Field. The recovered condensate from Bakhrabad and Meghna Gas Fields of BGFCL, Bangura Gas Field
of Tullow, Saldanadi, Srikail, Sundalpur and Semutang Gas Fields of BAPEX is fractionated into MS and
HSD in the fractionation plant of Bakhrabad Field. The products, MS and HSD, are delivered to Padma
Oil Company Limited and Meghna Petroleum Limited regularly for marketing.
As per latest report of Petrobangla, total recoverable gas reserve of 6 fields under the company is about
12.252 TCF, out of which 7.427 TCF or about 60.62 percent was recovered till 30 June, 2016.
With a view to mitigating the ongoing gas crisis, BGFCL has kept up its relentless effort to ensure
uninterrupted gas supply and implemented various development projects with the financial assistance
of GoB and Gas Development Fund (GDF) in addition to various development partners such as ADB, JICA
etc. Under the projects, 3 new wells (Titas-25, 26 and Bakhrabad-10) have been drilled and workover of
2 existing wells (Titas-11 and 21), installation of 3 gas booster compressors each having capacity of 15
MMSCFD, installation of 1 gas process plant having capacity of 75 MMSCFD have been completed. At
present, out of these 5 wells, 3 wells are producing about 43 MMSCFD gas which is being supplied to
national grid. About 45 MMSCFD gas from Titas well no. 25 and 26 is expected to become into
production soon.
Under 3D seismic survey project, 335 sq. km field level survey over Titas structure and 210 sq. km over
Bakhrabad structure have been completed. In the survey report drilling of 11 new wells at Titas Gas Field
and drilling of 3 new wells at Bakhrabad Gas Field have been proposed. Of these, 4 wells (Titas-27, 24, 25
and 26) at Titas Gas Field and 1 well (Bakhrabad-10) at Bakhrabad Gas Field have been drilled as well as
drilling of Titas-23 is in progress. About 32 MMSCFD gas from Titas-27 and Bakhrabad-10 is being
supplied to national grid and about 70-75 MMSCFD gas from Titas-23, 24, 25 and 26 is expected to be
added to national grid. To reduce gas seepage problems through workover programme of 5 wells at Titas
Gas Field, a separate project was undertaken with GDF finance. Besides, due to gradual decline of wellhead
pressure of producing wells at Titas, Bakhrabad and Narsingdi Gas Fields and hence for supplying gas from
producing wells matching grid line pressure, a GDF financed project for installation of compressor at
Bakhrabad Field was undertaken; another project funded by JICA was undertaken for installation of
compressors at Location-C of Titas Field and Narsingdi Gas Field. Besides, a project funded by ADB has
already been approved for installation of wellhead compressors at Location-A of Titas Gas Field.
Annual Report 2016

The company earned a gross revenue of Tk. 36,618.9 million and a pre-tax profit of Tk. 5,800.6 million
during the FY 2015-16. The company also paid Tk. 27,987.9 million to the National Exchequer in the
form of SD, VAT, DSL, dividend and income tax during the year.
In the company e-tendering has already been introduced under e-response system, web mail is being
used for official communications through company's own website and necessary steps along with
training program have been taken to introduce e-filing.
34
 Petrobangla

Sylhet Gas Fields Limited (SGFL)

Sylhet Gas Fields Limited is the second largest state-owned gas producing company in the country.
It used to be operated in the name of Pakistan Petroleum Ltd. (PPL) during pre-independence days.
After independence, the company ran its business operations in the name of "Bangladesh
Petroleum Limited" until a company in the name and style of "Sylhet Gas Fields Limited" was
formed, and incorporated under Companies Act on 8 May, 1982 with a view to taking over from the
Government of Bangladesh all gas fields, installations, production facilities, all other assets at
Sylhet and Chhatak fields or elsewhere in Bangladesh owned by Pakistan Petroleum Ltd. (PPL).
The company, under its umbrella, currently operates Sylhet (Haripur), Kailashtila, Rashidpur and
Beanibazar Gas Fields. A total of 13 wells (2 at Sylhet, 5 at Kailashtila, 5 at Rashidpur and 1 at
Beanibazar) are presently on stream which produce an average of 147 MMSCFD. The produced gas is
supplied to Jalalabad, Bakhrabad, Pashchimanchal and Karnaphuli gas distribution companies franchised
areas. SGFL shares about 5.2% of country's total gas production. In the FY 2015-16, SGFL produced
53.93 BCF of gas and 229,982 barrels of condensate and 162,038 barrels of NGL from its own fields.
The company also produced 707,817 barrels of finished petroleum products - petrol, diesel and
kerosene-by fractionating condensate from its own fields and Bibiyana Gas Field operated by Chevron.
The company has been implementing various development projects with the objective of
diversifying its activities and enhancing gas production capacity. The ongoing projects include: (i)
Installation of a 4,000- bbl/day capacity Condensate Fractionation Plant at Rashidpur, (ii)
Installation of a 3,000-bbl/day Catalytic Reforming Unit at Rashidpur to convert petrol into octane,
(iii) Drilling of appraisal/development well Sylhet-9 and KTL-9, (iv) Review of 3-Dseismic data
acquired from Kailashtilla and Haripur fields and (v) Workover of production-suspended wells.
During the FY 2015-16, the company earned an amount of Tk. 4,661.0 million from the sales of
53.86 BCF of gas and Tk. 9,335.3 million from the sales of 1,128,986 barrels of finished liquid
petroleum products such as petrol, diesel, kerosene, NGL and condensate. Company earned
pre-tax profit to the tune of Tk. 5,153.7 million during the year and paid Tk. 5,290.2 million as
supplementary duty and VAT, Tk. 1,607.8 million as income tax and Tk. 1,345.5 million as dividend.
The total contribution by the Company to the Government exchequer in the financial year stood at
Tk. 8,243.5 million which was 58.90% of the total income from sales.
Sylhet Gas Fields Limited has been adjudged as the top-most VAT paying organization in the
production sector at national level for the last consecutive 5 years up to FY 2015-16 and has been
rewarded by the National Board of Revenue. The company has already established e-tendering
procedure for inviting bid.

Annual Report 2016

Maintenance work of Kailashtilla MSTE plant by SGFL.

35
 Petrobangla

Gas Transmission Company Limited (GTCL)

Gas Transmission Company Limited (GTCL) was incorporated on 14 December, 1993 with the objectives
of (i) centralized operation and maintenance of national gas grid; and (ii) expanding of national gas grid
and as required, ensuring balanced supply and usage of natural gas in all regions of the country.
During the FY 2015-16, GTCL transmitted in total 767.21 BCF of gas, 10.34% higher than the previous
year, delivering 34.84 BCF, 515.18 BCF, 89.19 BCF, 90.06 BCF and 37.95 BCF to franchise areas of
Jalalabad, Titas, Bakhrabad, Karnaphuli and Paschimancahal gas distribution companies respectively.
The Company transported a total of 1,335,767 barrels of condensate through its 193 km long
North-South condensate pipeline during the year, which was 152.44% higher than the previous year.
Ongoing projects in FY 2015-16 were : (i) Installation of compressor stations at Ashuganj & Elenga
under Natural Gas Access Improvement Project (NGAIP), (ii) Construction of 30" x 60 km
Bakhrabad-Siddhirganj gas transmission pipeline project, (iii) SCADA Rehabilitation Project, (iv)
Construction of 30" x 66 km Dhanua-Elenga and West Bank of Bangabandhu Bridge-Nalka Gas
Transmission Pipeline Project, (v) Construction of 30" x 61 km gas transmission pipeline for Gas
Transmission Capacity Expansion-Ashuganj to Bakhrabad Project, (vi) Construction of Company’s
Head Office Building Project, (vii) Construction of 20" x 3.3 km high pressure gas transmission
pipeline from Titas Well no. 23 & 24 at Sorail to Khatihata and Titas Well no. 25 & 26 at Malihata to
Khatihata Project, (viii) Construction of 36" x 181 km Bakhrabad-Feni-Chittagong gas transmission
pipeline Project, (ix) Construction of 30" x 6.15 km Padma River crossing Project and (x) Construction
of 24" x 45 km gas transmission pipeline from Kutumbopur to Meghnaghat Project.
Up-coming projects are : (i) Lagalbandth-Mawa 30" x 45 km gas transmission pipeline, (ii)
Zajira-Gopalganj 30" x 95 km gas transmission pipeline, (iii) Construction of 30" x 60 km gas transmission
pipeline from Polianpur of Jinaidha to Jessore TBS, (iv) Construction of Mobarakpur-Baghabari 25 km
gas transmission pipeline, (v) Construction of Payera-Barisal-Zajira/Payera-Barisal-Khulna gas
transmission pipeline and (vi) Construction of Bhola-Barisal 60 km gas transmission pipeline.
LNG and transmission pipeline : With the object of reducing present gap between demand and supply
of gas in the country, the Government has taken initiatives to import considerable quantity of Liquefied
Natural Gas (LNG). Bangladesh eyes starting LNG imports from April, 2018 and is making concerted
efforts to move forward with the LNG import infrastructure. For transmitting the Regasified LNG from
FSRU at Moheshkhali to national grid, it is required to develop infrastructure. 2 FSRUs at Moheshkhali are
being developed and are expected to be commissioned by 2018. In this regard, GTCL has already
constructed 30” x 91 km transmission pipeline from Moheshkhali to Anowara and construction of 42" x
30 km gas transmission pipeline from Anwara to Fouzdarhat is underway. For supplying of enhanced
quantity of regasified gas, construction of another parallel 42" x 79 km gas transmission pipeline from
Moheshkhali to Anwara is also underway.
The company earned an amount of Tk. 4,192.2
million as revenue and Tk. 1,834.1 million as
pre-tax profit and contributed an amount of Tk.
3,845.5 million to Government Exchequer
during the FY 2015-16.
All tender notices and important information
are being posted in the Company’s own
website regularly. Steady State network
analysis are carried out to all transmission
pipeline of the company to determine
accurately and expeditiously the gas pressure
Annual Report 2016

and transportation capacity by using Pipeline

Studio Software. Enterprise Resource Planning
(ERP)/Enterprise Asset Management (EAM)
System for GTCL are also being implemented.
The company has already established
Compressor station at Ashuganj of GTCL. e-tendering procedure for inviting bid.
36
 Petrobangla

Titas Gas Transmission and Distribution

Company Limited (TGTDCL)
The discovery of a huge gas field on the bank of the Titas River in Bhramanbaria in 1962 created a
new horizon for the utilization of natural gas. Titas Gas Transmission and Distribution Company
Limited (TGTDCL) was established on 20 November, 1964. The company began its commercial
operation with the commissioning of gas supply to Siddhirganj Thermal Power Station on 28 April,
1968 after construction of 14" x 93 km Titas-Demra gas transmission pipeline by the then East
Pakistan Industrial Development Corporation. In October, 1968 the first domestic natural gas
connection was provided to the residence of renowned litterateur Shawkat Osman.
In the beginning, 90% of its shares belonged to the then Pakistan Government, and Pakistan Shell
Oil Company owned the rest. Under the Nationalisation Order of 1972, all the Government-owned
shares of the company were vested in the Government of Bangladesh (GoB). In accordance with an
agreement signed between Shell Oil Company and GoB on 9 August, 1975 the ownership of the
remaining 10% shares was transferred to the GoB through Petrobangla in exchange for a
lump-sum payment of ￡1,00,000. After the independence of Bangladesh in 1971, the company
started its journey as a company of Petrobangla with an authorized and paid up capital of Tk. 17.8
million. At present, the authorized and the paid up capitals of the company are Tk. 20,000.0 and Tk.
9,892.2 million respectively. Presently, Petrobangla holds 75% shares of this company while private
share holders hold 25% of shares.
The main objective of the company is to supply natural gas to customers of different categories
under its franchise area and thereby reduce dependency on imported liquid fuel. Towards this end,
the company has to construct, operate and maintain pipelines, stations and associated facilities.
Currently, the company distributes gas in the districts of Dhaka, Narayanganj, Narsingdi, Munshiganj,
Manikganj, Gazipur, Tangail, Mymensingh, Jamalpur, Sherpur, Netrokona and Kishoreganj.
Presently, total length of pipeline owned by the company is 13,038.69 km including 149.66 km built
during the FY 2015-16. The total number of customers of the company was 1,897,316 as on 30
June, 2015 which rose to 2,023,005 in June, 2016. Bulk customers of the company include 3
fertilizer plants, 7 government and 31 private power stations. The company hogs about 60.51% of
natural gas market share in Bangladesh.
During FY 2015-16, total 585.64 BCF of gas was sold and a sales revenue of Tk. 1,12,038.3 million
was earned and the total revenue was Tk. 1,13,171.0 million including meter rent and surcharge.
compared to previous year’s revenue of Tk. 81,606.2 million, the growth rate in revenue income for
the year under review was 38.68% higher. During FY 2015-16 a sum of Tk. 1,06,427.2 million
(including arrear revenue) was realized against the revenue income of Tk. 1,13,171.0 million, which
was Tk. 6,743.8 million less than the receivable. The company earned a net profit before tax and a
net profit after tax of Tk. 9,700.2 million and Tk. 7,293.9 million respectively. The company paid Tk.
4,836.0 million to the Government exchequer during FY 2015-16.
Modern and state of the art web-based total integrated Computer System has been set up to
boost up all the functions of the company to facilitate improved customer services which includes
– automatic updating of customer ledger if bill payment is made through banks having online
banking facilities; informing registered customers about their gas bills through SMS; obtaining
online update about payment and dues; complaining through online facility; email facility through
own web-domain; processing of annual/half yearly financial reports and other related information
through integrated accounting software.
Annual Report 2016

The company has launched a dedicated call center to serve customers. A project is being
implemented for installation of 2,00,000 pre-paid meter for the domestic customers of Dhaka
metropolitan area. The company has already established e-tendering procedure for inviting bid. The
company has 3 emergency gas control centres including 24 hours central emergency control room.
During the FY 2015-16, 414 km illegal gas distribution line has been removed and around 1,24,000
illegal gas burners have been disconnected.

37
 Petrobangla

Bakhrabad Gas Distribution Company Limited

(BGDCL)
Bakhrabad Gas Distribution Company Limited (BGDCL), previously named as Bakhrabad Gas
Systems Limited (BGSL), was established on 7 June, 1980 initially with the three-fold
responsibilities of production, transmission and distribution. Gas supply was commenced on 20
May, 1984. Subsequently, Bakhrabad Gas Field was handed over to BGFCL putting an end to its
production wing. Further, the 2 main transmission pipelines of the company, 24" X 110 km
Bakhrabad-Chittagong and 20" X 69 km Bakhrabad-Demra gas transmission pipelines were
handed over to GTCL leaving only the responsibility for marketing gas in the Chittagong Division
excluding Brahmanbaria district and Kashba and Bancharampur Upazilas (outside its franchise
area). As per Government decision, the company has again been reconstituted keeping greater
Comilla and greater Noakhali Districts under its franchise area and adding Brahmanbaria to its
operational area.
The cumulative gas pipeline of different categories constructed by the company up to 30 June, 2016
is 3,868.79 km. During the FY 2015-16, a total of 89,975 gas connections were given which
includes 1 power, 2 industry, 2 captive power, 1 CNG and 89,969 domestic (Burner) category. The
cumulative gas connection stood at 4,89,519 as on 30 June, 2016 which includes 18 power, 1
fertilizer, 159 industrial, 76 captive power, 2,140 commercial, 89 CNG and 4,87,036 domestic
(Burner) connections.
During the FY 2015-16, BGDCL sold 137.54 BCF gas to its customers, of which power plants
consumed 97.39 BCF (70.81%). The company earned Tk. 17,651.80 million as sales revenue, net
profit before tax stood at Tk. 1,456.80 million and paid Tk. 1,156.10 million to the national
exchequer. The company purchased 133.62 BCF gas and sold 137.54 BCF gas this year. As a result,
the system gain of the company stood at 3.92 BCF i.e 2.93%.
In order to mitigate gas crisis, 2 by-pass runs have been constructed in the TBS at Chandpur, 2
separate regulating lines have been constructed at Feni TBS, parts of RMG-512 regulator of Salda
TBS and Bancharampur TBS have been replaced during FY 2015-16. During the year, a Skid
Mounted Transfer Prover has been installed at a cost of Tk. 22.50 million for calibration of gas
meters used in BGDCL.
BGDCL started its online gas bill collection services through a bank from 28 June, 2016. The
company has already established e-tendering procedure for inviting bid. Launching a hot line
number for disposing of any complain received from the customer. During the FY 2015-16, the gas
connections of 811 nos. of different categories of customers were disconnected due to the
non-payment of gas bills as well as the connections of illegal gas users.
Annual Report 2016

Bizra off-take, Laksham, Comilla of BGDCL

38
 Petrobangla

Jalalabad Gas Transmission and Distribution

System Limited (JGTDSL)
Jalalabad Gas Transmission and Distribution System Limited (JGTDSL) was formed under the
Companies Act on 1 December, 1986 with an authorized capital of Tk. 1,500.00 million after
infrastructural development of gas transmission and distribution system under the management
of Petrobangla for supplying gas to different categories of customers in Sylhet Division.
The company possessed a total 3,817.00 km gas network comprising of 465.08 km transmission,
1,336.61 km distribution, 1,221.02 km feeder mains and service lines and 794.29 km other
(customer financing) pipelines. During the FY 2015-16, the company constructed 32.89 km
pipelines including 0.33 km distribution, 15.60 km feeder mains and service lines and 16.96 km
other (customer financing). During the year, the company provided 14,298 new gas connections -
3 captive power, 2 tea estate, 3 industrial, 2 commercial and 14288 domestic connections which is
258.74% more than the budgetary target.
During the FY 2015-2016, the gas sales of the company was about 95.66 BCF of which power
plants consumed 64.83 BCF (67.77%) and others 30.83 BCF. During the year, the company earned
Tk. 13,318.16 million as sales revenue, Tk. 1,312.97 million as net profit before tax and Tk. 853.43
million after tax. The company paid Tk. 941.70 million to the national exchequer.
During the year, the company was able to keep the system loss within ‘Zero’ through the efficient
management and different action plans have been taken and implemented to keep the system loss
under control.
On the other hand, a project titled “Gas supply to Srihotto Economic Zone, Sherpur, Moulvibazar” is
being implemented by the company during the year to supply 20 MMCFD gas to industrial
customers of BEZA (Bangladesh Economic Zone Authority) controlled ‘Srihotto Economic Zone’.
The completion period of the project is March, 2016 to June, 2017 (15 Month).
JGTDSL introduced online gas bill information system through which the customers can have
information regarding gas bill payment and dues from the company's website. Implementation of
computerization system expediting marketing and revenue activities of the company as well as
easing issuance of dues clearance certificates to the customers; introduction of collection of gas bill
through mobile phone, customers can pay their gas bills from anywhere and at anytime. The
company has already established e-tendering procedure for inviting bid. During the FY 2015-16,
gas connections of 2,882 nos. of different categories of customers have been disconnected due to
the non-payment of gas bills.

Annual Report 2016

Pipeline construction work by JGTDSL.

39
 Petrobangla

Pashchimanchal Gas Company Limited (PGCL)

This is the 4th gas marketing company under Petrobangla set-up with the objective of distributing
gas in the north-west region of the country. The Company commenced its business on 23 April,
2000. During the FY 2015-16, a total of 1.283 km of pipeline of various diameters has been
constructed and by the end of June, 2016 the Company encompassed a network of 1,627.493 km
pipeline.
At the end of FY 2015-16, the company provided gas connection to 1,29,303 customers including
9840 new gas connections to new customers. During this year a total of 40.23 BCF of gas was sold
by the company as against 36.40 BCF gas in the previous year. The company earned Tk. 6,272.7
million revenue from sales during FY 2015-16 and earned Tk. 587.9 million as net profit before tax.
The company paid Tk. 638.3 million to the national exchequer during this year.
The company is always putting its best efforts for achieving its desired goal. Meanwhile the
company has extended its gas network facilities in Sirajganj, Baghabari, Bera, Santhia, Shahjadpur,
Pabna, Ishwardi (including Ishwardi EPZ), Bogra, Rajshahi and other important areas for carrying the
benefits of gas facility on the doorstep of the masses.
Various actions have been taken to install/replace meter with Electronic Volume Corrector (EVC) to
determine more accurate gas consumption, calculation of proper system loss of gas, to increase the
consciousness of gas usage and to increase the reliability between gas sellers and customers.
Activities of Emergency Cell are always in place for disposing of any complain regarding emergency
gas leakage or any other problem. The company has already established e-tendering procedure for
inviting bid. During FY 2015-16 a total number of 460 gas connections have been disconnected
which include 447 Domestic, 11 Commercial, 1 Industry and 1 CNG for illegal consumption of gas
and defaulting customers.
Annual Report 2016

Pipeline Construction Work at Ishwardi EPZ by PGCL Maintenance Work of Bogra RMS by PGCL
40
 Petrobangla

Karnaphuli Gas DistributionCompany Limited

(KGDCL)
Karnaphuli Gas Distribution Company Limited (KGDCL) was formed on 8 February, 2010, with
greater Chittagong and Chittagong Hill tracts area which were under erstwhile BGSL franchise,
pursuant to a government decision to rationalize and improve the services of the companies under
Petrobangla. The commercial activities of the company commenced on 1 July, 2010.
Gas sales by KGDCL during the FY 2015-16 stood at about 99.20 BCF. The company earned Tk.
20,844.9 million as sales revenue and Tk. 5,074.7 million as net profit before tax. The company paid Tk.
2,541.4 million to the national exchequer during this year. The company purchased 91.27 BCF gas and
sold 99.20 BCF gas this year. As a result, the system gain of the company stood at 7.93 BCF i.e 8.69%.
At the end of the FY 2015-16, KGDCL had a customer base of 6,02,074 of which 36,816 (CNG 2,
Industry 3, Captive Power 2 and Domestic 36,809) were new customers connected in this year. During
FY 2015-16, 43.66 km distribution pipelines with diameters ranging from ¾" to 6" were constructed.

Following Steps have been taken to prevent misuse and to ensure the accuracy of metering system :
Tele-metering system has been introduced initially in the RMS of 5 bulk industrial customers
(KAFCO, Shikolbaha Power Station, Chittagong Power Station, KPM and CUFL) for monitoring the
quantum of gas supplied to them. Meters with Electronic Volume Correctors (EVCs) are being
installed in the RMS of load intensive customers. By now, meters with EVCs have been set up in the
premises of 229 customers including 66 CNG, 87 captive power and 74 industrial, 1 commercial, 1
domestic customer, and they are billed on the basis of EVC data. With the finance of Japan
International Co-operation Agency (JICA), a project for installation of 60,000 pre-paid gas meters
for the domestic users in the Chittagong city area is in progress to prevent the misuse of gas. Rest
of the domestic customers will be brought under this system in phases.
Development of customized software to bring all the activities of KGDCL under Enterprise Resource
Planning (ERP) software is in progress. Installation of online gas bill system is in process to ensure easy
and fast bill payment by all categories of customer of KGDCL. The company has undertaken the work of
mapping its network of gas pipelines and gas installation and also developed its own website
(www.kgdcl.gov.bd) in order to improve customer service and easy access of information. The company
has already established e-tendering procedure for inviting bid. During FY 2015-16 a total number of
12,081 gas connections have been disconnected which include 11,909 Domestic, 113 Commercial, 44
Industry and 15 CNG Feed Gas for defaulting and illegal users.

Annual Report 2016

Modern meter testing lab of KGDCL

41
 Petrobangla

Sundarban Gas Company Limited (SGCL)

The Sundarban Gas Company Limited (SGCL) was formed on 23 November, 2009 with the objective of
supplying natural gas to the south-western region of the country which includes Khulna Division,
Barisal Division and 5 districts of Dhaka division. In the initial stage, the Company has been
implementing gas distribution network in 5 districts, namely Kushtia, Jhenaidah, Jessore, Khulna and
Bagerhat under “South West Region Gas Distribution Network Project" since February, 2011. According
to the direction of progress meeting held at Energy and Mineral Resources Division (EMRD) on 30 June,
2016, the project has been closed and submitted a closing report. In the said meeting the decision was
also made for taking separate projects to supply gas to power plants and the industrial customers.
Presently, gas supply by this company is limited within the island district Bhola only. One 34.5 MW
rental power plant of Venture Resources Ltd, 225 MW power plant of PDB and 3 commercial, 1
industrial and around 3,076 domestic customers in Bhola town are connected with gas distribution
network of the company. On an average of 35-40 MMSCFD gas is being supplied to these customers.
In the FY 2015-16, SGCL completed a project named "Extension of gas distribution Network in
Bhola and New Network at Borhanuddin" at a cost of Tk. 183.4 million and constructed 42.2 km (6"
X 20.0 km, 4" X 100 meter, 2" X 11.2 km and 1" X 10.9 km) distribution pipelines under this project.
During the year, SGCL completed 20" X 850 meter pipeline to supply 85 MMCFD gas to 360 MW
Power Plant of North West Power Generation Company Ltd. at Bheramara. Construction work of 85
MMCFD capacity RMS at Bheramara is in progress.
In the FY 2015-16, the company earned a total revenue of Tk. 863.4 million, out of which Tk. 844.5
million was earned from sales of 10.4 BCF of natural gas and the rest Tk. 18.9 million from other
operational income. In FY 2015-16, the company made a total expenditure of Tk. 776.9 million; out
of which Tk. 712.8 million was spent to meet the cost of purchased gas and the rest Tk. 64.1 million
for meeting the cost of gas distribution. After considering other non-operational income, interest
income on deposit and allocation made to workers profit participation fund, net income before tax
and after tax for 2015-16 were Tk. 93.5 million and Tk. 60.8 million respectively. In 2015-16 total
capital of the company increased by Tk. 60.8 million revenue reserve was derived from income and
expenditure statement. Besides, project loan increased this year by Tk. 196.7 million which included
Tk. 18.5 million from Petrobangla, and Tk. 178.2 million from ADB. Fixed assets increased by Tk. 6.0
million and Tk. 296.1 million added to work-in-progress of SGCL’s 2 running projects in FY 2015-16.
The company’s current assets liabilities ratio was 1.51 : 1, rate of return was 40.21%, return on
capital employed was 2.23% and debt-equity ratio was 85.67 : 14.33 in the FY 2015-16. The
performance level of liquidity, profitability and solvency of the company has not reached to the
expected level. After successful implementation of the projects, the sales of gas will be increased
and the financial condition of the company will stand on a sustainable base.
Annual Report 2016

RMS at Bheramara of SGCL

42
 Petrobangla

Rupantarita Prakritik Gas Company Limited (RPGCL)

Rupantarita Prakritik Gas Company Limited (RPGCL) started its activity as a company of Petrobangla
from 1 January, 1987. RPGCL is vested with the responsibilities of promoting CNG, building a transport
infrastructure in the country based on CNG, and production and distribution of LPG, petrol and diesel
obtained from NGL. RPGCL has been playing an effective and important role in arresting air pollution,
saving foreign exchange by substituting import of fuel and accelerating multidimensional use of
indigenous natural gas. The Government has undertaken various programmes for arresting air
pollution, saving foreign exchange and ensuring uses as well as expanding diversified use of indigenous
natural gas. RPGCL has been working untiringly to implement the programmes taken up by the
Government in the gas sector. Within the gas network of the country the Government and the private
entrepreneurs have setup 589 CNG filling stations and 180 conversion workshops till June, 2016.
These stations, located across the country, are supplying CNG to almost 300 thousand vehicles daily.
Approximately 3.53 BCF of CNG is being used every month from 554 CNG stations, which is 5% of
the total gas consumption of the country. Hence, the Government has been able to save about Tk.
11,170.0 million per month in foreign exchange in the sector against fuel import. Widespread use
of CNG has reduced air pollution to a great extent. CNG activities adopted by the government to
curb air pollution has been widely extolled at home and abroad.
RPGCL has been entrusted to import and marketing LNG by the Government to meet the ever
increasing demand of natural gas. Steps have been taken to install LNG terminal both land based and
floating. In this regard two Terminal Use Agreements (TUA) have been signed to install 2 Floating Storage
and Re-gasification Unit (FSRU) at Moheshkhali in Chittagong for supplying 500 MMSCFD of LNG each
and expected to commission by April and October 2018 respectively. The company is exploring different
sources (both long and short term) including Qatar for importing LNG. In addition, initial activities has
been started to install 2 land based LNG terminals, one at Moheshkhali and the other at Paira port area.
Each of these 2 terminals will have a capacity of handling LNG equivalent to 1,000 MMSCFD of gas.
Effort is underway to train the officers of RPGCL in home and abroad to take up the responsibility.
The company will introduce auto billing system of its CNG dispensing units at Central CNG Workshop
by the next fiscal year to facilitate improved customer service. Steps are to be taken to induct use of
LPG as an alternative fuel for transport system of the country including installation of LPG gas stations
all over the country. The company has already established e-tendering procedure for inviting bid.
In the FY 2015-16, the company earned Tk. 2,088.6 million as revenue before VAT from sales of
CNG, LPG, MS and HSD. The company earned an amount of Tk. 289.6 million as net profit before
tax and made a payment of Tk. 774.2 million to the National Exchequer.

Annual Report 2016

KTL Plant of RPGCL

43
 Petrobangla

Barapukuria Coal Mining Company Limited

(BCMCL)
Barapukuria Coal Mine is the first and only coal mine in Bangladesh. In 1985, Geological Survey of
Bangladesh (GSB) discovered high quality bituminous coal spread over an area of 6.68 sq. km at a
depth of 118-509 metres in Barapukuria. China National Machinery Import and Export Corporation
(CMC) developed this underground mine having a capacity of 1.0 million metric tons of coal per year.
The Barapukuria coal is very much environment friendly, very low in sulphur content (0.53%) and
very high in heat generation capacity (11,040 btu/lb).
To ensure proper implementation of the project, Barapukuria Coal Mining Company Limited (BCMCL)
was established on August 4, 1998. For maintaining uninterrupted production of coal form the
mine, a Management, Production and Maintenance Contract was signed with the Consortium of
CMC-XMC on 4 June, 2005 for a period of 71 months with a contract price of US$ 82.30 million
(Foreign Portion US$ 55.551 + Local Portion Tk. 1,572.7 million). The company went into
commercial production on 10 September, 2005. The contract was completed on 10 August, 2011.
On expiration of the M&P Contract, a new draft “Management, Production, Maintenance &
Provisioning Services (MPM&P)” contract was signed on 6 August, 2011 with the successful bidder
Consortium of Xuzhou Coal Mining Group Corporation Limited and China National Machinery Import
and Export Corporation (XMC-CMC). New M&P contract came into effect on 11 August, 2011 and
will remain effective for a period of 72 months. According to new M&P contract, a target of 5.50
million metric tons of coals production has been set. During the contract period, coal production
from longwall face and new roadway development activities will continue simultaneously.
In the FY 2015-16, total coal production and roadway development was achieved by 10,21,638.10
metric tons and 3,119.10 meters respectively. The present commercial production rate is
4000-5000 metric tons/day. During the FY 2015-16, the company earned Tk. 8,949.7 million from
sale of coal and Tk. 738.6 million from other sources comprising a total amount of Tk. 9,688.3
million, which is the highest ever revenue collection. During this period the expenditures for
operating and other costs were Tk. 4,663.3 million and Tk. 516.1 million respectively. The company
made a net profit of Tk. 4,508.9 million during this period prior to transferring Tk. 225.4 million to
Beneficiary Profit Participation Fund (BPPF). In this fiscal year, the net profit stood at Tk. 2,784.3
million after deducting of BPPF and income taxes, which was Tk. 2,466.6 million in the previous
fiscal year. In addition to this, the actual revenue expenditure was Tk. 5,344.7 million in the current
fiscal year against an allocated budget of Tk. 7,456.5 million which is 28.32% less. In addition, during
the FY 2015-16, the company deposited Tk. 3,309.8 million to the government exchequer as
supplementary taxes, custom duties, VAT, income tax and royalty, etc.
Remarkable activities by BCMCL in FY 2015-16 included 10,21,638.10 metric tons coal production from
1205 (part), 1208, 1214 longwall face and roadway development; The development of roadway has
been completed 3,119.10 meters including construction of 845 meters Dedicated Air Return Roadway.
To enhance the present production of Barapukuria Coal Mine, 2 projects have been undertaken with the
supervision of the planning and exploration division. The name of the projects are: (i) Feasibility study for
extension of existing underground mining operation of Barapukuria Coal Mine towards the southern and
the northern side of the basin without interruption of the present production and (ii) Feasibility Study for
Development of Dighipara Coal Field at Dighipara, Dinajpur, Bangladesh. Approval process of SSP of the
both project and appointment process of consulting firm was underway in the FY 2015-16.
Subsidence monitoring activities has been conducted by this company on regular basis in the FY
2015-16. There is a joint schedule program by BCMCL and Chinese XMC/CMC consortium for
Annual Report 2016

surface subsidence monitoring (three times in a month). The company has already established
e-tendering procedure for inviting bid.
In ‘National Power and Energy Week, 2015’ BCMCL obtained the award of being the best company
and its stall was adjudged the best one in the category of government companies. Apart from this,
BCMCL and BAPEX, under the banner of Petrobangla, jointly took part in the ‘BDF Fair’ organised by
Bangladesh Development Forum on 15-16 November 2015 and adjudged the best one in this fair.

44
 Petrobangla

Maddhapara Granite Mining Company Limited

(MGMCL)
Geological Survey of Bangladesh (GSB) discovered the deposits of hard rock at a depth of 136
meter at Maddhapara, Parbatipur of Dinajpur district in 1974. Later, a contract between
Petrobangla and Korea South South Corporation (NAMNAM) of DPR Korea was signed on 27
March, 1994 for development of Maddhapara Hard Rock Mining Project and accordingly NAMNAM
had undertaken the physical works of the project from September, 1994. Maddhapara Granite
Mining Company Limited (MGMCL) was formed under Petrobangla on 4 August, 1998 to operate
the hard rock mine at Maddhapara. Commercial production was started on 25 May, 2007, but the
production was limited to about 600-800 metric tons per day in single shift operation.
Granite mining in Bangladesh is important, as there is hardly any other source of construction
aggregate. It is set to produce about 1.65 million metric tons of granite per year. In order to continue
full range of target production (5,500 metric tons/day) from Maddhapara Granite Mine and
development of underground roadways and stopes, a contract was signed between Maddhapara
Granite Mining Company Limited and Germania-Trest Consortium (GTC) on 2 September, 2013 for
management and operation of the mine having contract price of US$ 171.86 million. According to
the contract, the contractor will develop 12 new stopes and produce 9.20 million metric tons of
rock over a period of 6 years. Under the commencement of new management contract, the
contractor has been extracting granite, and started development of new underground roadways
and stopes.
In the FY 2015-16, a total 1,53,719.00 metric tons of granite was produced and 6,25,831.00
metric tons was sold. Additional granite was sold from previous stocks. The company earned Tk.
1,056.1 million from the sale of granite and made a payment of Tk. 198.5 million to the national
exchequer.
Considering the huge demand for granite in the country and in order to save the foreign currency
used for import of granite, Petrobangla has undertaken a scheme for studying the feasibility for
increasing production of granite by expansion of the Maddhapara Mine. Other than this, final report
has been submitted by Infrastructure Investment Facilitation Company (IIFC) for market feasibility
study for Enhancement of hardrock production. The recommendation of the report is being
implemented on priority basis. Manufacturing of Ceramic Tiles (Wall Tiles, Roof Tiles, Facing,
Pavement) by using stone dust and manufacturing of Granite Polish Block, Mosaic Block, Gem
Stone are being in progress with collaboration of Institute of Mining, Mineralogy and Metallurgy
(IMMM), BCSIR, Joypurhat.

Annual Report 2016

Stack Yard of MGMCL

45
 Petrobangla

The Annual Development Programme of Petrobangla for the FY

2015-16 had a total allocation of Tk. 16,504.30 million, which
includes Tk. 6,776.20 million as project aid. The programme consists
of 18 projects of which 12 are foreign-aided and 6 are GoB funded. In
Development addition, there are 8 projects financed by the Corporation/Companies
itself (Self Ficancing) involving total allocation of Tk. 4,132.30 million,
Programmes where Cash Foreign Exchange (CFE) involvement is Tk. 1,507.00
for the Fiscal Year million and Local Currency is Tk. 2,625.30 million. Furthermore, there
2015-16 are 13 projects under Gas Development Fund (GDF) in the same fiscal
year with a total allocation of Tk. 9,752.90 million, where CFE
involvement is Tk. 5,001.60 million and local currency is Tk. 4,751.30
million. List of ongoing projects stating estimated total project cost,
execution period and source of finance are as follows :

A. Ongoing Projects (Foreign Aided) : FY 2015-16 (Taka in Million)

No. Project Executing Estimated Development

Name of the project
Period Agency Cost (PA) Partners
1 Installation of Compressor Stations at Ashuganj and Elenga Jan.'06- GTCL 14941.33 ADB
Sep.'17 (9191.22)
2 Hatikumrul-Bheramara Gas Transmission Pipeline Project (30" July'06- GTCL 7268.51 ADB
x 98.10 km) Dec.'16 (4408.03)
3 Bheramara-Khulna Gas Transmission Pipeline Project (20" x July'07- GTCL 9038.14 ADB
162.50 km) Dec.'15 (4752.66)
4 Bakhrabad-Siddhirganj Gas Transmission Pipeline Project (30" x July'07- GTCL 8000.00 World Bank
60 km) Dec.'18 (5134.4)
5 Gas Seepage Control and Appraisal and Development of Titas Jan.'10- BGFCL 10000.00 ADB
Gas Field (Titas Well no. 23, 24, 25 and 26) June'17 (8100.00)
6 Supply Efficiency Improvement of Titas Gas Transmission and Jan.'10- TGTDCL 632.80 ADB
Distribution Company Ltd. Sept.'15 (424.60)
7 South-West Region Gas Distribution Network Project Jan.'10- SGCL 6000.00 ADB
Sept.'15 (2850.00)
8 Rehabilitation and Expansion of Existing Supervisory Control Jan.'13- GTCL 2940.04 JICA
and Data Acquisition (SCADA) System of National Gas Grid Dec.'18 (2402.35)
under GTCL (Component-B of Bharamara Combined Cycle
Power Plant Development Project)
9 Natural Gas Efficiency Project (Installation of Wellhead Compressors July'14- BGFCL 8680.00 JICA
at Titas Gas Field Location-C and Narshingdi Gas Field) June'18 (7290.00)
10 Natural Gas Efficiency Project (Installation of Prepaid Gas Meter for July'14- KGDCL 2465.60 JICA
KGDCL) June'18 (1560.30)
11 Natural Gas Efficiency Project (Dhanua- Elenga and West Bank July'14- GTCL 9791.76 JICA
of Bangabandhu Bridge - Nalka Gas Transmission Pipeline) (30" June'19 (5070.19)
x 52 km and 24" x 14 km)
12 July'15- TGTDCL 7120.99
Annual Report 2016

Natural Gas Efficiency Project (Installation of Prepaid Gas Meter JICA

for TGTDCL) Dec.'18 (4548.10)
Sub-Total (Foreign-Aided) 86879.10
(55731.90)
Source : Planning & Monitoring Division, Petrobangla.

46
 Petrobangla

B. Ongoing Projects (GoB Funded) : FY 2015-16 (Taka in Million)

Project Executing Estimated
No. Name of the project
Period Agency Cost (CFE)

1 Mobarakpur Oil/Gas Exploration Well Drilling Project Jan.'06- BAPEX 892.60

Dec.'15 (527.30)
2 Gas Transmission Capacity Expansion Project (Ashuganj- Jan.'10- GTCL 7433.80
Bakhrabad) (30" x 61 km) June'16 (3836.70)
3 Augmentation of Gas Production under Fast Track Program July'10- BGFCL 13005.00
(Drilling of 4 wells under BGFCL and 1 well under SGFL) (Titas March'16 SGFL (10538.00)
Well no. 19, 20, 21, 22 and Rashidpur Well no. 8)
4 Gas Fields Development Project of BAPEX (Saldanadi Well no. 3, Jan.'10- BAPEX 3056.40
4 and Fenchuganj Well no. 4, 5) June'16 (2410.10)
5 Sylhet Gas Transmission Network Up-gradation Project July'12- JGTDSL 1068.30
June'16 (237.20)
6 Moheshkhali-Anowara Gas Transmission Pipeline Project (30" x July'14- GTCL 9819.00
91 km) June'16 (4689.10)

Sub-Total ( GoB) 35275.10

(22238.30)
Source : Planning & Monitoring Division, Petrobangla.

C. Ongoing Projects (Self Financing) : FY 2015-16 (Taka in Million)

Project Executing Estimated
No. Name of the project
Period Agency Cost (CFE)

1 Installation of 4,000 barrels/day capacity Condensate July'12- SGFL 4635.00

Fractionation Plant at Rashidpur (1st Revised) Dec.'16 (3288.00)

2 Installation of 3,000 barrels/day capacity Catalytic Reforming March'12- SGFL 3541.30

Unit (CRU) at RCFP to Convert Petrol into Octane (2nd Revised) June'17 (2763.80)

3 Construction of 2 Storage Tanks at Rashidpur Condensate Sept.'12- SGFL 213.10

Fractionation Plant (RCFP) June'16 (0.00)
4 Construction of 13 Storied Head Office Building with Two July'12- GTCL 1084.80
Basements of Gas Transmission Company Limited (GTCL) at Dec.'16 (0.00)
Sher-e-Bangla Nagar Administrative Area, Agargaon, Dhaka
5 Construction of 20" DN x 1000 psig x 30 km Gas Transmission July'13- TGTDCL 1982.13
Pipeline from Sreepur to Joydevpur CGS June'17 (693.15)

6 Feasibility Study for the Extraction of Coal Bed Methane (CBM) Jan.'14- Petrobangla 233.79
at Jamalganj Coal Field June'16 (176.20)

7 Extension of Gas Distribution Network in Bhola and New Oct. ’14- SGCL 183.40
Network at Borhanuddin June ‘16 (21.00)

8 Feasibility Study for Extension of Existing Underground Mining Apr.’15- BCMCL 354.60
Annual Report 2016

Operation of Barapukuria Coal Mining towards the Southern & March‘17 (229.80)
the Northern Side of the Basin without interruption of the
Present Production
Sub-Total (Self Financing) 12228.10
(7172.00)
Source : Planning & Monitoring Division, Petrobangla.
47
 Petrobangla

D. Ongoing Projects (under GDF) : FY 2015-16 (Taka in Million)

Project Executing Estimated
No. Name of the project
Period Agency Cost (CFE)

1 Procurement of Standby Gas Process Plant for Shahbazpur July’12- BAPEX 953.40
Field June ‘16 (850.90)
2 Workover of Wells at Titas Gas Field Seepage Area July’13- BGFCL 2350.00
Dec.‘16 (647.50)
3 Drilling of 1 Appraisal Oil Well/ Development Gas Well Sep.’12- SGFL 2181.90
(Kailashtilla no. 7) at Kailashtilla Structure Dec.‘15 (589.90)
4 3-D Seismic Project of BAPEX Dec.’12- BAPEX 1825.00
Nov.‘17 (914.00)
5 Dec.’12- BAPEX 711.30
2-D Seismic Project of BAPEX June‘17 (336.00)

6 Nov.’13- SGFL 1400.70

Drilling of Well no. Kailashtilla-9 (Appraisal/ Development Well)
Dec.‘17 (609.90)

7 Dec.’13- SGFL 1602.70

Drilling of Well no. Sylhet-9 (Appraisal/ Development Well)
June’18 (558.00)

8 Drilling of Well no. Rashidpur-9 (Appraisal/ Development Well) Feb.’15- SGFL 1980.70
June‘17 (570.80)

9 July’14- SGFL 4098.10

Drilling of Well nos. Rashidpur-10 and 12 (Exploratory Wells) Dec.‘17 (1230.30)

10 Jan.’14- BGFCL 1197.50

Installation of Gas Compressors at Bakhrabad Field June‘17 (948.00)

11 July’14- BAPEX 1166.70

Procurement of Gas Process Plant for Srikail Gas Field
Dec.‘16 (1020.00)
12 Shahjadpur-Sundalpur (Sundalpur-2) Appraisal/ Development Oct.’14- BAPEX 754.50
Well Drilling Project June‘16 (488.50)
13 Rehabilitation of Engine, Mud Tanks & Electrical Power System Nov.’14- BAPEX 389.00
of IDECO-Rig Project June‘16 (344.00)

Sub-Total (GDF) 20611.50

(9107.80)
Grand Total (Foreign-Aided + GoB + Self Financing + GDF) 154993.80
(94250.00)
Source : Planning & Monitoring Division, Petrobangla.
Annual Report 2016

Construction of pipeline under Sreepur (Gayaran)-Joydebpur gas transmission pipeline project by TGTDCL
48
 Petrobangla

Future
Programmes

MoU signing with Petronet at Petrobangla

Energy is the driving force for the development of the country. The role of energy is important for the entire economic
development such as poverty reduction and the overall development of the country. By achieving the GDP growth rate of
7% for the country, it is possible to improve the living standard of huge population through proper utilization of the limited
resources. It may be mentioned here that present energy crisis has become acute due to the absence of proper initiatives
for the last 7 years until 2009 in the energy sector. As a result, the GDP growth of the country has been hampered in the
industry and other production sectors including power sector. To overcome the stagnant situation, the present
Government has been putting its best efforts for ensuring energy supply to accelerate the economic development. To
achieve this goal short-term, mid-term and long-term plans have been taken for gas and coal extraction, development
and production. Furthermore, to ensure the energy supply, necessary steps have been taken to import 1,000 MMSCFD of
LNG by 2018. Initiatives have also been taken for the development of coal fields in line with coal policy being finalized.
In view of the above perspective, following strategies have been taken up for the oil, natural gas and mineral development
under the Petrobangla umbrella:
 Adoption of time-based action plan for discovering new gas fields and development of the producing gas fields;
 Make BAPEX more effective in exploring oil and gas through acquiring new rigs and its ancillaries;
 Importing Liquefied Natural Gas (LNG) to compensate increasing gas demand;
 Support Government in finalising National Energy Policy and Coal policy to create opportunity for using energy
from multiple sources;
 Increasing financial capacity of BAPEX by forming Gas Development Fund; and
 Putting efforts to ensuring proper pricing of gas to conserve energy and improve the financial operations of the
gas sector.

Countrywide
Gas Demand Projection up to 2019 Figures are in MMSCFD
SL. Company Y-2015 Y-2016 Y-2017 Y-2018 Y-2019

A. Titas Gas T & D Company Ltd. 1989 2099 2170 2209 2220
B. Karnaphuli Gas Distribution Co. Ltd. 447 449 512 526 552
C. Bakhrabad Gas D Company Ltd. 493 618 554 555 555
D. Jalalabad Gas T & D System Ltd. 341 424 522 524 529
E. Pashchimanchal Gas Company Ltd. 129 200 201 258 259
Annual Report 2016

F. Sundarban Gas Company Ltd. 45 80 83 139 141

Total Gas Demand 3444 3870 4042 4211 4256
Overall Countrywide Total Gas Demand 3274 3664 3823 3979 4023
Source : Production & Marketing Division, Petrobangla.
49
 Petrobangla

National exploration company BAPEX has launched a 108 well

programme covering exploration, production and work-over for
augmentation of gas production from the onshore under the
Plan for title ‘Rupkalpa (Vision) 2021’. To be completed by the year 2021,
Production this programme is expected to yield additional capacity of
Augmentation around 1,000 MMCFD. In addition, International Oil Companies
engaged in the offshore are also expected to drill at least five
exploration wells during this period. A summary of the
augmentation programmes is given in the table below :

Year-wise Drilling and Work-over Programmes

FY Exploration Well Development Well Workover Well Total
2015-16 1 1 3 5
2016-17 5 3 7 15
2017-18 19 3 9 31
2018-19 17 6 3 26
2019-20 8 11 - 19
2020-21 10 7 - 17
Total 60 31 22 113
Annual Report 2016

3D Interpretation centre of BAPEX

50
 Natural Gas of
Bangladesh
Chemical Composition, Specific Gravity and Calorific Value
Water Chemical Composition of Natural Gas (Volume Percent) Gross
No. Specific Hydrogen
Gas Fields Content Iso- High Calorific
N2 CO2 Gravity Sulphide
(Lb/MMSCF) Methane Ethane Propane Butane N-Butane Comp. (Btu/cft)
1 Sylhet 1.200 95.349 2.542 0.974 0.247 0.296 0.165 0.247 0.180 0.5896 1056.878 Nil
2 Chhatak n/a 97.900 1.800 0.200 - - - - - 0.5500 1005.710 Nil
3 Rashidpur 1.200 98.489 0.802 0.148 0.053 0.028 0.046 0.338 0.096 0.5637 1017.234 Nil
4 Kailashtilla 0.700 96.217 2.588 0.674 0.098 0.075 0.019 0.310 0.018 0.5773 1042.726 Nil
5 Titas 4.500 96.587 1.900 0.406 0.099 0.060 0.166 0.343 0.440 0.5790 1032.000 Nil
6 Habiganj 4.200 97.650 1.543 0.006 0.000 0.000 0.002 0.790 0.008 0.5648 1014.000 Nil
7 Bakhrabad 4.800 93.700 3.790 0.834 0.246 0.116 0.233 0.495 0.585 0.5989 1057.000 Nil
8 Semutang n/a 96.079 2.499 0.415 0.103 0.056 0.096 0.209 0.542 0.5818 1037.080
9 Begumganj n/a 95.460 3.190 0.640 0.170 0.040 - - 0.300 0.5800 1045.610 Nil
10 Kutubdia n/a 95.720 2.870 0.670 - 0.310 - 0.360 0.070 0.5900 1041.660 Nil
11 Beanibazar 4.400 93.536 3.499 1.324 0.309 0.274 0.603 0.354 0.099 0.6089 1086.418 Nil
12 Feni n/a 95.710 3.290 0.650 0.150 0.050 - - 0.150 0.5800 1049.840 Nil
13 Kamta n/a 95.360 3.570 0.470 0.090 - - - 0.510 0.5700 1043.130 Nil
14 Fenchuganj n/a 97.264 1.452 0.135 0.036 0.012 0.070 0.212 0.819 0.5743 1018.390 Nil
15 Jalalabad n/a 95.986 2.509 0.433 0.300 0.066 0.375 0.254 0.075 0.5885 1056.066 n/a
16 Narsingdi 4.200 95.264 2.702 0.593 0.172 0.096 0.233 0.351 0.589 0.5893 1044.000 Nil
17 Meghna 4.400 95.185 3.050 0.667 0.169 0.096 0.209 0.390 0.234 0.5878 1050.000 Nil
18 Shahbazpur n/a 94.553 3.555 0.569 0.159 0.058 0.062 0.201 0.842 0.5913 1044.570 Nil
19 Sangu n/a 94.510 3.170 0.610 0.190 0.070 0.410 0.440 0.600 0.5900 1058.000 n/a
20 Saldanadi n/a 96.959 1.781 0.324 0.079 0.048 0.095 0.129 0.583 0.5770 1029.860 Nil
21 Bibiyana n/a 94.880 2.442 0.873 0.280 0.253 0.926 0.195 0.153 0.6107 1060.000 Nil
22 Bangura 2.110 95.482 2.564 0.661 0.146 0.146 0.194 0.309 0.664 0.5884 1049.200 Nil
23 Moulavibazar n/a 98.198 1.002 0.160 0.042 0.022 0.087 0.356 0.131 0.5673 1020.220 Nil
24 Shahjadpur Sundalpur n/a 98.349 0.908 0.070 0.001 0.004 0.003 0.558 0.106 0.5634 1013.520 Nill
25 Srikail n/a 95.928 2.452 0.527 0.135 0.078 0.134 0.130 0.616 0.5847 1041.050 Nill
Petrobangla

Source : Production & Marketing Division, Petrobangla.

Annual Report 2016

51
 Petrobangla

Natural Gas Tariff

in Bangladesh
Taka/MCF
Domestic
Ferti- Comme- Tea Cap. CNG Brick field
Effective From Power Industry
lizer rcial estate Power feed gas (seasonal) Metered Single Double
Burner Burner
29.07.1968 1.20 1.20 2.52 6.00 - - - - 6.00 6.00 10.00
28.06.1969 1.60 1.60 2.92 6.40 - - - - 6.40 6.30 10.50
19.06.1974 3.72 3.72 7.20 12.00 - - - - 12.00 15.00 28.00
01.12.1977 5.00 5.00 9.00 13.00 - - - - 13.00 16.00 30.00
02.06.1979 6.25 6.25 16.00 17.00 - - - - 16.00 20.00 36.00
07.06.1980 7.75 7.75 18.00 19.00 - - - - 18.00 22.00 40.00
07.06.1981 9.30 9.30 27.75 28.00 - - - - 20.00 25.00 45.00
01.07.1982 10.50 10.50 31.00 31.00 - - - - 27.00 35.00 65.00
30.06.1983 11.50 11.50 36.00 36.00 - - - - 34.00 45.00 80.00
27.06.1984 13.05 13.05 36.00 45.20 - - - 51.00 34.00 45.00 80.00
30.06.1985 15.66 15.66 43.20 54.24 - - - 61.20 40.80 60.00 100.00
28.06.1986 19.09 19.09 52.14 65.39 - - - 78.30 44.88 66.00 110.00
18.06.1987 24.82 24.82 52.14 85.00 72.30 - - 78.30 56.10 80.00 130.00
01.07.1988 28.54 28.54 59.96 97.75 83.15 - - 90.05 56.10 92.00 150.00
01.07.1989 33.00 28.54 70.00 110.00 83.15 - - - 65.00 100.00 170.00
01.07.1990 37.95 32.82 80.42 126.50 95.62 - - - 74.75 115.00 195.00
01.07.1991 39.08 33.98 85.23 134.22 100.62 - - 106.19 74.75 115.00 195.00
01.05.1992 43.05 37.39 93.74 134.22 110.16 - 43.05 116.67 82.12 126.00 215.00
01.03.1994 47.57 41.34 103.07 147.53 113.26 - - 128.28 82.12 160.00 250.00
01.12.1998 54.65 47.57 118.93 169.90 130.26 86.37 - 147.25 94.86 185.00 290.00
01.09.2000 62.86 54.65 136.77 195.39 149.80 99.11 - 169.33 109.02 210.00 330.00
01.01.2002 65.98 57.48 143.57 205.30 157.16 104.21 - 177.83 114.40 275.00 350.00
01.09.2002 70.00 60.00 140.00 220.00 140.00 100.00 - 220.00 120.00 325.00 375.00
15.02.2003 - - - - - - 70.00 - - - -
01.07.2004 72.45 62.15 145.20 228.50 145.20 - - 228.50 126.10 340.00 390.00
01.09.2004 - - - - - 103.50 - - - - -
01.01.2005 73.91 63.41 148.13 233.12 148.13 105.59 - 233.00 130.00 350.00 400.00
25.04.2008 - - - - - - 282.30 - - - -
01.08.2009 79.82 72.92 165.91 268.09 165.91 118.26 - - 146.25 400.00 450.00
12.05.2009 - - - - - - 509.70 - - - -
Annual Report 2016

19.09.2011 - - - - - - 651.29 - - - -
01.09.2015 - - 190.86 321.68 182.64 236.73 764.55 - 198.22 600.00 650.00

Source : Accounts Division, Petrobangla.

52
 Petrobangla

Gas Fields in
Production
(As in December, 2016)
Gas in MMSCFD, Condensate in BBL

No of Production Production
Total Wells
Company Gas Field Producing Capacity
(No.) Wells (MMSCFD) Gas Condensate

1. BGFCL Titas 27 24 518 516.3 378.0

Bakhrabad 10 6 43 37.0 16.0
Habiganj 11 7 225 225.5 11.5
Narsingdi 2 2 30 28.3 47.6
Meghna 1 1 11 11.2 20.3
Sub-Total 51 40 827 818.2 473.4
2. SGFL Sylhet 3 2 8 8.1 60.4
Kailashtila 6 5 73 71.2 621.2
Rashidpur 8 5 60 58.2 55.3
Beanibazar 2 2 15 9.5 154.5
Sub-Total 19 14 156 147.0 891.5
3. BAPEX Salda 3 1 10 7.8 1.0
Fenchuganj 5 3 35 35.9 27.0
Shahbazpur 4 3 50 39.5 2.7
Semutung 6 2 3 3.3 0.9
Sundalpur 1 0 0 3.5 0.0
Srikail 3 3 40 35.2 24.3
Begumganj 3 0 0 0.3 0.0
Sub-Total 25 12 138 125.6 55.8
Sub-Total (1+2+3) 95 66 1121 1090.7 1420.6
4. IOCs
Jalalabad 8 7 260 274.4 1604.1
CHEVRON Maulavibazar 9 5 50 49.1 6.7
Bibiyana 26 26 1200 1216.5 8426.7
Annual Report 2016

TULLOW Bangora 7 5 110 103.6 310.0

Sub-Total 50 43 1620 1643.6 10347.4
Grand Total (1+2+3+4): 145 109 2741 2734.3 11768.0
Source : Production & Marketing Division, Petrobangla.

53
 Petrobangla

Growth Trajectory of
Customer
Year TGTDCL BGDCL JGTDSL PGCL KGDCL SGCL TOTAL

1989-1990 330698 59937 32355 - - - 422990

1990-1991 346473 68129 34968 - - - 449570

1991-1992 364403 75028 37844 - - - 477275

1992-1993 386226 87741 40556 - - - 514523

1993-1994 414833 100402 43247 - - - 558482

1994-1995 453922 112118 47285 - - - 613325

1995-1996 493261 124159 51819 - - - 669239

1996-1997 541767 140443 56918 - - - 739128

1997-1998 588231 156294 61886 - - - 806411

1998-1999 636415 175525 65966 - - - 877906

1999-2000 684401 195374 70428 100 - - 950203

2000-2001 769000 214000 67000 1000 - - 1051000

2001-2002 833979 243887 72555 1558 - - 1151979

2002-2003 907946 271526 76923 3957 - - 1259798

2003-2004 979195 298060 83997 5714 - - 1366412

2004-2005 1041732 325089 90506 7684 - - 1465013

2005-2006 1110175 355958 98511 19254 - - 1583898

2006-2007 1239900 395508 107467 28898 - - 1771773

2007-2008 1350187 433887 117142 38607 - - 1939823

2008-2009 1458743 466355 127053 49522 - - 2101673

2009-2010 1556560 510954 137523 58405 - - 2263442

2010-2011 1563290 190596 149725 59086 369703 - 2332400

2011-2012 1563307 206213 162615 59171 369703 - 2361009

2012-2013 1565801 207938 177974 59725 369703 - 2381141

2013-2014 1722712 318435 192943 96492 472602 - 2803184

2014-2015 1897316 399540 209489 119483 533273 - 3159101

Annual Report 2016

2015-2016 2023005 489519 223784 128893 602074 3082 3470357

up to Dec,16 2025847 493241 223738 128724 602074 3069 3476693

Source : Production & Marketing Division, Petrobangla.

54
 Petrobangla

Natural Gas
Reserve of Bangladesh
(As in December, 2016)
Figure in BCF
Reserve Proved + Remaining
Proved + Cumulative
SL Year of Estimated By Proved Probable + Reserve
Fields GIIP Probable Production
No. Discovery (1P) Possible w.r.t 2P
(2P) (Dec, 2016)
Company Year (3P) (Jan, 2017)
A. Producing
1. Titas 1962 RPS Energy 2009 8148.9 5384.0 6367.0 6517.0 4221.34 2145.66
2. Habiganj 1963 RPS Energy 2009 3684.0 2238.0 2633.0 3096.0 2273.03 359.97
3. Bakhrabad 1969 RPS Energy 2009 1701.0 1052.9 1231.5 1339.0 803.87 427.65
4. Kailashtilla 1962 RPS Energy 2009 3610.0 2390.0 2760.0 2760.0 647.07 2112.93
5. Rashidpur 1960 RPS Energy 2009 3650.0 1060.0 2433.0 3113.0 585.81 1847.19
6. Sylhet/Haripur 1955 RPS Energy 2009 370.0 256.5 318.9 332.0 211.27 107.63
7. Meghna 1990 RPS Energy 2009 122.1 52.5 69.9 101.0 61.32 8.58
8. Narshingdi 1990 RPS Energy 2009 369.0 218.0 276.8 299.0 180.92 95.88
9. Beani Bazar 1981 RPS Energy 2009 230.7 150.0 203.0 203.0 94.66 108.34
10. Fenchuganj 1988 RPS Energy 2009 553.0 229.0 381.0 498.0 148.34 232.66
11. Shaldanadi 1996 RPS Energy 2009 379.9 79.0 279.0 327.0 87.70 191.30
12. Shahbazpur 1995 Petrobangla 2011 677.0 322.0 390.0 488.0 26.86 363.14
13. Semutang 1969 RPS Energy 2009 653.8 151.0 317.7 375.1 12.10 305.60
14. Sundalpur Shahzadpur* 2011 BAPEX 2012 62.2 25.0 35.1 43.5 9.98 25.12
15. Srikail 2012 BAPEX 2012 240.0 96.0 161.0 161.0 54.84 106.16
16. Begumganj* 1977 BAPEX 2014 100.0 14.0 70.0 - 0.88 69.12
17. Jalalabad 1989 D&M 1999 1491.0 823.0 1184.0 1184.0 1046.70 137.30
18. Moulavi Bazar 1997 Unocal 2003 1053.0 405.0 428.0 812.0 289.54 138.46
19. Bibiyana 1998 D&M 2008 8350.0 4415.0 5754.0 7084.0 2530.04 3223.96
20. Bangura 2004 Tullow 2011 1198.0 379.0 522.0 941.0 359.05 162.95
Sub-total A: 36643.6 19739.9 25814.9 29673.6 13645.32 12169.60
B. Non-Producing
21. Kutubdia 1977 HCU 2003 65.0 45.5 45.5 45.5 0.00 45.5
22. Rupganj 2014 BAPEX 2014 48.0 - 33.6 - 0.00 33.6
Sub-total B: 113.0 45.5 79.1 45.5 0.00 79.1
C. Production Suspended
23. Chattak** 1959 HCU 2000 1039.0 265.0 474.0 727.0 26.46 447.54
24. Kamta 1981 Niko/Bapex 2000 71.8 50.3 50.3 50.3 21.1 29.20
25. Feni 1981 Niko/Bapex 2000 185.2 125.0 125.0 175.0 62.4 62.60
26. Sangu*** 1996 Cairn/Shell 2010 899.6 544.4 577.8 638.7 487.91 89.85
Sub-total C: 2195.6 984.7 1227.1 1591.0 597.9 629.2
Annual Report 2016

Grand Total (A+B+C) in BCF 38952.2 20770.1 27121.09 31310.1 14243.19 12877.89
Grand Total (A+B+C) in TCF 39.0 20.8 27.12 31.31 14.24 12.88

Note: * Production from Sundalpur Shahjadpur and Begumganj Gas Fields ceased on 14 June 2016 and 30 July 2016 respectively.
** Reserve of Chattak Gas Field is under re-evaluation due to excessive seepage caused by the two consecutive blowouts in 2005.
*** Production from Sangu Gas Fields suspended from 1 October, 2013.
Source : Reservoir and Data Management Division, Petrobangla.
55
 Petrobangla

Major Gas Transmission

Pipelines and Flow Capacity
Max. Flow
Diameter Length Oper. Pres.
Company Name of The Line and Route Capacity
(Inch) (Km) (Psig)
(MMSCFD)
TGTDCL 01 Titas - Dhaka 14 81.80 1000 175
02 Titas - Narshingdi 16 46.31 1000 265
03 Narshingdi - Joydevpur 14 37.51 1000 220
04 Narshingdi - Ghorasal 14 10.30 1000 220
05 Habiganj - Ashuganj 12 57.75 1000 85
06 Monohardi - Narshingdi 20 24.50 1000 300
07 Monohardi - Kishorganj 4 35.00 1000 6
08 Ashuganj V.S. # 3 - ZFCL 10 4.00 1000 95
09 Elenga - Tarakandi 12 42.41 1000 80
10 Dhonua - Mymensingh 12 56.70 1000 55
11 Tarakandi - Jamalpur 8/6 21.00 1000 25
12 Mymensingh - Netrokona 8/6 40.00 1000 60
GTCL 13 North South 24 175.00 1050 330
14 Ashuganj - Bakhrabad 1 30 58.00 1000 425
15 Bangabandu Bridge 30 9.00 1000 300
16 Elenga - Nalka 24 28.50 1000 250
17 Nalka - Baghabari 20 35.50 1000 250
18 Beanibazar - Kailashtila 20 18.00 1050 250
19 Ashuganj - Habiganj 30 54.00 1050 500
20 Rasidpur - Habiganj 30 28.00 1050 500
21 Nalka - Hatikumrul 30 6.00 1000 425
22 Hatikumrul - Bogra 20 54.00 1000 225
23 Monohardi - Dhanua Elenga Pipeline (1st Phase) 30 51.00 1000 750
24 Bakhrabad - Demra 20 68.72 1000 250
25 Bakhrabad - Chittagong 24 174.65 1000 300
26 Ashuganj - Elenga 24 124.00 960 330
27 Ashuganj - Monohardi 20 37.00 1000 425
28 Dhaka Clean Fuel (GTCL Part) 20 60.00 1000 425
29 Bonpara - Rajshahi 12 53.00 1000 450
30 Hatikumrul - Bheramara 30 78.00 1000 400
31 24" Dia 8 Km From Titas Gas Field - AB Pipeline Project 24 8.00 1050 330
32 Srikail Gas Field (Location 2) - AB Pipeline Project 20 1.50 1000 250
33 Bibiyana - Dhanua 36 137.00 1000 640
34 Bakhrabad - Siddhirganj 30 60.00 1000 450
35 Srikail Gas Field (Location 2) - AB Pipeline Project 10 7.70 1000 250
Intake Point of Titas AB Pipeline at Chayabaria
36 Ashuganj - Bakhrabad 2 30 61.00 1000 450
KGDCL 37 Chittagong Ring Main 24/20/16 59.48 350 451
38 KPM Spaur 8 36.15 350 18
39 Chittagong - Rauzan 20 18.00 350 150
40 Semutang - Chittagong 10 56.00 960 70
JGTDSL 41 Haripur - NGFF - 43.00 1000 62
42 Kailashtila - Kuchai 8 13.00 1000 62
43 Kuchai - Chatak 6 39.00 1000 36
Annual Report 2016

44 Devpur - Kumargaon 6 11.00 1000 36

45 Habiganj - Shahji Bazar 8 2.00 1000 53
46 Shahaji Bazar - Shamsher Nagar 6 65.00 1000 11
47 Srimongal - Moulovi Bazar 6 26.00 1000 11
48 Chatak - Tengratila 4 19.00 1000 10
49 Tengratila - Sunamganj 4 13.00 1000 10

56
 Category-wise
Annual Gas Sales
(FY 1990-91 to FY 2015-16)
Gas Volume In Billion Cubic Feet (BCF)
BULK SALES Non Bulk Sales
Gas Total Total
Year Sub UFG
Production Power Ferti- Sub. Industry Domestic Comme- Tea/ Brick Sales Production
lizer Total rcial CNG Field Total
1990-91 172.8 82.6 54.2 136.8 13.2 10.5 2.9 0.7 0.0 27.3 164.1 8.7 172.8
1991-92 188.5 88.1 61.6 149.7 13.4 11.6 2.9 0.7 0.2 28.8 178.3 10.2 188.5
1992-93 211.0 93.3 69.2 162.5 15.2 13.5 2.4 0.7 0.2 32.0 194.3 16.7 211.0
1993-94 223.8 97.3 74.5 171.8 20.3 15.4 2.9 0.7 1.1 40.4 211.0 12.8 223.8
1994-95 247.4 107.4 80.5 187.9 24.2 18.9 2.9 0.6 1.1 47.7 234.5 12.9 247.4
1995-96 265.5 110.9 91.0 201.9 27.3 20.7 3.0 0.7 1.0 52.7 253.6 11.9 265.5
1996-97 261.0 110.8 77.8 188.6 28.6 22.8 4.5 0.7 0.5 57.1 245.3 15.7 261.0
1997-98 282.0 123.6 80.1 203.7 32.3 24.9 4.6 0.7 0.4 62.9 266.2 15.8 282.0
1998-99 307.5 140.8 82.7 223.5 35.8 27.0 4.7 0.7 0.4 68.6 291.8 15.7 307.5
1999-00 332.4 147.6 83.3 230.9 41.5 29.6 3.9 0.6 0.4 76.0 306.5 25.9 332.4
2000-01 372.2 175.3 88.4 263.7 48.0 31.9 4.1 0.7 0.5 85.1 348.3 23.9 372.2
2001-02 391.5 190.0 78.8 268.8 53.6 36.7 4.3 0.7 0.5 95.8 364.1 27.4 391.5
2002-03 421.2 190.5 95.9 286.4 63.8 44.8 4.6 0.9 0.1 114.6 400.5 20.7 421.2
2003-04 452.8 *231.4 92.8 324.2 46.5 49.2 4.8 2.7 0.1 103.3 427.5 25.3 452.8
2004-05 486.8 *248.9 94.0 342.9 51.7 52.5 4.9 4.4 0.0 113.5 456.3 30.5 486.8
2005-06 527.0 *273.3 89.09 362.39 63.3 56.7 3.3 7.6 0.0 130.9 493.3 33.7 527.0
2006-07 562.2 *314.6 62.5 377.1 77.5 63.3 5.7 12.8 0.0 159.3 536.2 26.0 562.2
20 07-08 600.9 *314.5 78.7 393.2 92.2 69.0 6.6 23.6 0.0 191.4 584.6 16.3 600.9
2008-09 653.8 *351.0 74.9 425.9 104.4 73.8 7.5 31.7 0.0 217.4 643.2 10.6 653.8
2009-10 703.6 *395.8 64.7 460.5 118.8 82.7 8.1 40.1 0.0 249.7 710.2 (6.6) 703.6
2010-11 708.9 *395.0 62.8 457.8 121.5 87.4 8.5 39.3 0.0 256.7 714.5 (5.6) 708.9
2011-12 743.7 *427.9 58.4 486.3 128.5 89.2 8.6 39.4 0.0 265.7 751.7 (8.0) 743.7
2012-13 800.6 *462.9 60.0 522.9 135.7 89.7 8.8 41.0 0.0 275.2 798.2 2.4 800.6
2013-14 820.4 *481.2 53.8 535.0 141.9 101.5 8.9 40.9 0.0 293.2 828.1 (7.7) 820.4
2014-15 892.2 *504.8 53.8 558.6 147.7 118.2 9.1 43.7 0.0 318.7 877.3 14.9 892.2
2015-16 973.2 *560.4 52.6 613.0 156.0 141.5 9.0 47.4 0.0 353.9 966.9 5.6 972.5
July–Dec,16 483.5 256.1 19.8 275.9 90.2 87.0 5.0 27.8 0.0 210.0 485.9 (7.5) 478.3

* Including Captive Power

UFG : Un-accounted For Gas (System Loss Plus Pilferage/system Gain)
Petrobangla

Source : Production & Marketing Division, Petrobangla.

Annual Report 2016

57
 Petrobangla

Payment to
National Exchequer Taka in Million

Year SD+VAT DSL Income Tax Dividend CD/VAT Royalty Total

1997-98 8431.1 2745.7 862.8 1000.1 404.1 - 13443.8

1998-99 9116.9 2984.9 1030.6 1500.0 168.0 - 14800.4
1999-00 8618.9 3253.3 1105.1 1150.0 131.9 - 14259.2
2000-01 11049.2 2503.8 1142.1 1058.6 93.0 - 15846.7
2001-02 10541.3 3327.3 917.2 1428.9 122.6 - 16337.3
2002-03 15576.4 3395.9 1456.8 1499.8 684.7 - 22613.7
2003-04 18235.2 3708.9 1620.4 1750.0 393.5 - 25708.0
2004-05 18481.0 3681.1 2530.6 2000.0 596.2 - 27288.8
2005-06 18526.7 3440.0 3597.8 2154.8 383.2 12.5 28115.0
2006-07 18801.5 4145.5 3665.1 2500.0 329.2 12.6 29453.9
2007-08 17900.6 3223.4 6490.5 - 350.1 60.9 28025.4
2008-09 19313.5 3533.0 7507.6 1715.3 554.7 6.3 32630.3
2009-10 20064.7 3331.2 10057.5 3281.6 2211.1 655.3 39601.3
2010-11 21625.5 3209.0 11050.9 4198.4 884.2 714.0 41682.0
2011-12 26668.1 2989.3 9378.9 3875.8 1470.6 1000.6 45383.3
2012-13 23861.6 3350.1 14257.2 8395.8 4596.4 1404.7 55865.8
2013-14 31616.0 2856.3 11854.2 4460.8 1443.0 1549.1 53779.4
2014-15 37498.6 2392.3 9471.7 11009.0 1425.4 245.5 62042.5
2015-16 48432.4 3269.4 15523.8 6900.9 744.2 345.2 75215.7
Source: Accounts Division, Petrobangla.
Annual Report 2016

RMS of combind cycle power plant at Bhola of SGCL

58
 Petrobangla

Bangladesh Oil, Gas and Mineral

Corporation (Petrobangla)
Statement of Financial Position (Balance Sheet)
As at 30 June 2016

2016 2015
BDT BDT

Assets
Non-current assets
Property, plant and equipment 298,078,828 276,624,117
Minor capital project (capital work-in-progress) 45,900,440 2,873,133
Assets held under SPMC project 26,041,845 26,041,845
370,021,113 305,539,095
Investments
Investment in enterprises 4,196,580 4,196,580
Internal accounts with projects - 20,000,000
Investment in FDRs 83,806,042,827 61,148,400,807
Investment in shares 18,482,000 18,482,000
83,828,721,407 61,191,079,387
Current assets
Group current account 14,351,551,466 13,299,576,099
Accounts receivable 36,752,863,468 33,257,715,662
Advances, deposits and prepayments 340,147,586 303,152,349
Loans and advances to employees 330,478,416 300,439,802
Cash and cash equivalents 14,278,769,550 8,933,505,350
66,053,810,486 56,094,389,262
Total assets 150,252,553,006 117,591,007,744

Equity and liabilities

Capital and reserves
Paid-up capital 1,500,000 1,500,000
Capital reserve 17,637,070,419 16,942,922,172
Revenue reserve 51,317,081,090 62,114,467,253
Gas Development Fund 34,511,371,478 30,720,958,397
103,467,022,987 109,779,847,822
Long-term liabilities
Long-term borrowings 39,275,956 39,275,956
Other long-term liabilities 107,307,911 114,657,238
146,583,867 153,933,194
Current liabilities
Creditors 45,159,574,417 6,939,835,929
Deferred income 26,041,845 26,041,845
Suspense account 1,178,700,711 689,334,632
Accruals and provisions 274,629,179 2,014,322
46,638,946,152 7,657,226,728
Annual Report 2016

Total equity and liabilities 150,252,553,006 117,591,007,744

K. M. HASAN & CO. S. F. AHMED & CO.

Chartered Accountants Chartered Accountants

59
 Petrobangla

Bangladesh Oil, Gas and Mineral

Corporation (Petrobangla)
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2016

2016 2015
BDT BDT

Income
Sales proceeds from IOC gas and condensate 102,923,315,215 80,421,044,204
Petrobangla actual cost recovery 834,222,000 487,041,000
Transport fare recovery 664,166 759,406
Rental income 11,310,856 11,817,367
Miscellaneous income 900,042 44,545,278
103,770,412,279 80,965,207,255

Expenditure
Cost of sales of gas and condensate 123,008,260,300 81,658,383,253
Personnel expense 640,629,316 413,389,489
Professional services 9,976,095 1,409,595
Promotional expense 8,978,653 8,274,804
Power expense 5,319,231 4,802,165
Communication expense 1,491,688 1,484,100
Transport expense 29,753,247 25,034,124
Occupancy expense 25,305,554 27,612,639
Financial expense 548,705 500,539
Administrative expense 5,943,056 5,448,361
Miscellaneous expense 105,115,005 72,442,354
Depreciation 19,062,034 18,722,605
Total expenditure 123,860,382,884 82,237,504,028
Operating profit/(loss) (20,089,970,605) (1,272,296,773)

Non-operating income
Interest on short term deposit 68,346,369 73,358,860
Interest on house building loan 11,971,059 11,595,851
Interest on motor cycle loan 342,801 409,278
Interest on computer loan 92,250 104,750
PSC financial income from STD bank account 500,000,000 540,000,000
PSC financial income from FDR 1,626,162,275 1,108,192,587
Total non-operating income 2,206,914,754 1,733,661,326
Net surplus/(deficit) (17,883,055,851) 461,364,554

Appropriation account
Un-appropriated surplus brought forward (30,547,281,756) (30,868,887,116)
Prior year's adjustment 89,061,454 (6,198,804)
Prior year's adjustment for PSC 79,481,725 (133,560,390)
Annual Report 2016

Surplus/(deficit) for the year (17,883,055,851) 461,364,554

(48,261,794,428) (30,547,281,756)

K. M. HASAN & CO. S. F. AHMED & CO.

Chartered Accountants Chartered Accountants
60
Annual Report 2016
Publication Committee
Jameel Ahmed Aleem Convener
Director (Operation & Mines), Petrobangla
Syed Ashfaquzzaman Member
Secretary, Petrobangla
Tofayel Ahmed Member
General Manager (Finance), Petrobangla
Engr. Md. Lutfor Rahman Member
General Manager (Production & Marketing), Petrobangla
Engr. Md. Zahirul Islam Member
General Manager (Strategic Planning & Resource Mobilisation), Petrobangla
Shahnewaz Parvez Member
Dy. General Manager (Contract), Petrobangla
Md. Javed Ibne Shahed Member Secretary
Dy. General Manager (Public Relations), Petrobangla
Tariqul Islam Khan Member
Manager (Public Relations), Petrobangla
 P E T R O B A N G L A

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