Petrobangla to buy rigs as it gears up for gas discovery

Petrobangla has launched preparations to expand its drilling fleet and auction off project bids as it attempts to execute a four-year strategy to drill 118 wells by fiscal year 2029–30. 

The plan aims to inject roughly 1,466 million cubic feet per day (mmcfd) of natural gas into the national grid to ease a choking supply shortage and curb growing reliance on costly imported liquefied natural gas (LNG). However, severe rig shortages and sluggish bureaucratic approvals threaten to derail execution.

Infographic: TBS

Petrobangla plans to drill 17 wells in FY2026-27, followed by 30 in FY2027-28, 33 in FY2028-29 and 38 in FY2029-30.

Of five, only two rigs active for development drilling

Petrobangla's exploration wing, Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), currently operates just five rigs: Bijoy-10, Bijoy-11, Bijoy-12, Bijoy-18, and IPS-1. Three are dedicated to workovers, leaving only two active for development drilling.

Given that an average 3,500-metre well requires significant setup and relocation time, a single rig can typically drill only three wells per year. To bridge this capacity deficit, Petrobangla plans to procure a new 2,000-horsepower rig and is preparing a Development Project Proposal (DPP) for a 1,500-horsepower unit to submit to the Planning Commission.

"To meet the growing demand for gas and align with the government's focus on domestic extraction, we have mapped out a 118-well programme over the next four fiscal years," said Engineer Md Shoyeb, Director (Operations and Mines, Additional Charge) at Petrobangla. He noted that the majority of the targeted wells would be auctioned off through international bidding processes.

The wells targeted for FY2026-27 are expected to produce around 175 mmcfd, while those planned for FY2027-28 are expected to yield 360 mmcfd. The projected additions are 436 mmcfd in FY2028-29 and 495 mmcfd in FY2029-30.

A Petrobangla official said the DPP would be sent to the Planning Commission for approval once it is finalised.

However, the corporation will need more than additional rigs to maintain the pace envisaged in the plan.

Drilling projects must pass through approval, procurement and implementation stages before rigs can actually be deployed.

Only three wells approved so far

Despite these high targets, implementation remains sluggish. Out of 118 planned wells, 47 are stuck in project preparation or administrative review, while the remainder require entirely new proposals.

Since the Tarique Rahman-led BNP government assumed office, the Executive Committee of the National Economic Council (Ecnec) has approved funding for just three wells: Begumganj-5, Begumganj-6 in Noakhali, and Sunetra-2 in Sunamganj. The Bapex project was cleared on 22 July at an estimated cost of Tk 729 crore.

Operational hurdles

Industry insiders warn that operational hurdles extend beyond drilling. Converting discoveries into usable grid supply requires extensive pipeline installation and processing infrastructure—an area where Petrobangla has historically lagged.

Since FY2021–22, Petrobangla has drilled 32 wells, discovering roughly 286 mmcfd of gas. Yet, only 134 mmcfd has actually reached the national grid, leaving more than half the newly discovered reserves stranded underground.

Combined with these 32 previously drilled wells, Petrobangla estimates that successful execution of the 118-well campaign could unlock a cumulative potential yield of 1,752 mmcfd.

"Despite logistical hurdles, if the plan proceeds as envisioned, the gas extracted will help ease the country's energy crisis in the long run," Shoyeb added.

Officials said the four-year programme would put pressure not only on Bapex's drilling capacity but also on Petrobangla's ability to move quickly from exploration to production and connect newly discovered gas to the national grid.

Without adequate funding and an increase in the number of rigs, ramping up domestic gas production will remain difficult to match with the targets set under the plan, sector insiders said.

"The average depth of a gas well is 3,500 metres. With one rig, an average of three wells can be drilled in a year, taking into consideration the time required to move the rig from one location to another," an official said.