10m barrel oil, 300b cubic feet gas found in Sylhet

Amid an acute primary fuel crisis, the energy ministry has announced the discovery of new oil and gas reserves in Sylhet, with potential oil reserves of 8-10 million barrels and gas reserves of around 200-300 billion cubic feet.

"A total of 35 barrels of oil will be extracted from there per hour. As such, it is possible to extract 500-600 barrels of oil per day," Nasrul Hamid, state minister for energy and mineral resources, said at a press briefing on Sunday (10 December). 

He also announced the discovery of gas reserves at Sylhet-10 well in four layers. 

Zanendra Nath Sarker, chairman of state-run Petrobangla, estimates that re-evaluation after testing could yield 200-300 billion cubic feet of gas. 

The value of the resources would be Tk24,000 crore (approximately $2.18 billion)–- Tk7,000 crore for oil and Tk17,000 crore for gas reserves, according to the estimates given by the state-owned oil and gas agency chief. 

The estimated reserves from the new discoveries will be enough to meet the oil demand for about one month and the gas demand for two to three months given the existing rates of consumption, officials said. 

The state minister said the presence of oil was confirmed at a depth of 1,397-1,445 metres, which was tested on 8 December. 
Samples of the extracted oil have been sent to Bangladesh University of Engineering and Technology, Eastern Refinery, and Sylhet Gas Fields for testing required to determine the actual oil reserves, which will take four to five months, he added.

Stating that oil and gas deposits have been found at different layers in the new discovery, the state minister said, "Previously, there was a mixture of oil and gas, with the oil serving as condensate. Now, oil and gas will be available separately; this is good news for everyone."

Nasrul further said he was optimistic about the sustainability of this reserve. "Chinese contractor Sinopec will work; we will extract the oil and use it."

Gas Field Limited (SGFL) Director Mohammad Mizanur Rahman told The Business Standard that oil reserves are generally not found in the region. 

"It will take five to six months to know the actual reserves. Further study should be done to get detailed information about this," he said. 

Fuel oil demand in Bangladesh is approximately 100.71 million barrels per year. Of this, 3.5 million barrels are spent on electricity production alone.

New found gas

Detailing the discovery,  Nasrul Hamid said the presence of gas reserves at Sylhet-10 well, unearthed at a depth of 2,570 metres, was identified in four layers, with the lower level yielding 25 million cubic feet at a flowing pressure of 3250 psi, totaling 43.1 billion cubic feet. 

Additionally, an anticipated 25-30 million cubic feet of gas is expected in a layer at 2,460-2,475 metres. If extracted at a rate of 20 million cubic feet, this reserve is projected to sustain for more than 15 years.

The state minister said that Petrobangla has initiated 46 drillings and is gearing up for an additional 100. The goal is to extract 500-600 million cubic feet of gas daily within the next two years. 

"By 2027, our gas consumption is projected to reach 6,000 million cubic feet. Through our ongoing preparations, we aim to achieve self-sufficiency in gas production by that time," Nasrul stated.

Bangladesh's annual gas demand stands at approximately one trillion cubic feet. 

As per the Bangladesh Economic Survey 2023, the country's total gas reserves amount to 40.23 trillion cubic feet, with proven and probable recoverable reserves at 28.62 trillion cubic feet. 

The cumulative gas production from 1960 to 2022 reached about 19.94 trillion cubic feet, leaving remaining recoverable reserves at 8.68 trillion cubic feet as of January 2023.

Currently, about 2,300 million cubic feet per day (mmcfd) of gas is being produced from 21 gas fields in the country, while about 700 mmcfd of gas is being imported from abroad to meet the demand of about 4,000 mmcfd, leaving a deficit of about 1,000 mmcfd.

Previous oil discoveries

This wasn't the first time that Bangladesh had struck oil. 

Oil was first discovered in Haripur field back in 1986. The authorities back then ran a drilling stamp test to pump out around 500 barrels of the thick oil.

Haripur oil field continued oil production till 1995 as the government decided the field was not commercially viable and it was abandoned.

The first time Bangladesh had struck commercially feasible oil was back in 2012. The oil was discovered in two gas fields in Sylhet.

"This is the first time that we have found economically viable oil resources, estimated at about 153 million barrels, in the two gas fields, 280km from the capital," the then chairman of Petrobangla Mohammad Hussain Monsur had told reporters.