Following the establishment of Bangladesh in 1971, the part of Pakistan’s state-owned Oil and Gas Development Corporation (OGDC) that had been operating in Bangladesh was reorganised as Bangladesh Mineral Oil and Gas Corporation (MBOGC). The minerals operation of MBOGC was segregated and vested in a new company, Bangladesh Mineral Development Corporation (BMDC) which became known as 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 contractors, processes raw gas to the pipeline specification, transports the processed gas through an increasing network of high-pressure 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.
Exploration and production operations are carried out by by the following companies:
Bangladesh Petroleum Exploration and Production Company Limited (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 activities of the country. BAPEX was transformed into an exploration and production company in 2000 with a view to making it self-reliant. Currently BAPEX is producing about 110 mmcf gas daily from its six onshore gas fields (Saldanadi, Fenchuganj, Shahbazpur, Semutang, Shahjadpur-Sundalpur, Srikail and Rupganj) contributing to mitigate the increasing gas demand of the country.
Besides, exploration and drilling activities in its awarded areas, BAPEX has also been conducting drilling and work-over operations to other sister concerns of Petrobangla since its beginning. BAPEX was awarded exploration block 8 & 11 along with some ring-fenced structures. Oil and gas exploration and development activities are being conducted periodically in these areas.
Bangladesh Gas Fields Company Ltd. (BGFCL)
Bangladesh Gas Fields Company Ltd. (BGFCL) is the state owned largest natural gas producing organization of Bangladesh. It is one of the largest industrial entities actively involved in producing natural gas, conditioning the same to the pipeline quality and then supplying to the gas transmission system. BGFCL now meets around 31% of country's total natural gas production.
BGFCL now operates 6 (six) gas fields namely Titas, Habiganj, Bakhrabad, Narsingdi, Meghna & Kamta. Of these 6 (six) gas fields, 5 (five) namely Titas, Habiganj, Bakhrabad, Narsingdi & Meghna are producing gas fields at present. Production from remaining 01 (one) gas field namely Kamta is suspended due to excessive water production. In addition, another field namely Feni gas field was handed over to NIKO Resources (Bangladesh) Ltd. and BAPEX for operation as per order of Ministry of Energy and Mineral Resources, Government of the People’s Republic of Bangladesh.
Sylhet Gas Fields Limited (SGFL)
Sylhet Gas Fields Limited (SGFL), a company of PETROBANGLA, is the pioneer in the discovery and production of natural gas and mineral oil in the country. Though this Company was incorporated on 8th May, 1982, its history of production and sale of natural gas dates back to 1960 under the umbrella of its predecessor, Pakistan Petroleum Limited (PPL), which discovered gas at Sylhet Well No. 1 at Haripur in Sylhet District in the year 1955. It was the first discovered hydrocarbon gas field in the Country.
In 1960, commercial production of gas commenced for the first time in the country by supplying about 4 million cubic feet of gas per day to Chhatak Cement Factory which heralded a new era in respect of production and use of natural gas in this region.
Currently, the Company has under its umbrella 5 gas fields namely Sylhet (Haripur), Kailashtilla, Rashidpur, Beanibazar and Chhatak with 11 producing gas wells.