India's Largest Database on New Projects
Cairn permitted to sell gas to 3rd party
29 June 2010: The Ministry of Law, Bangladesh has endorsed the Energy Ministry's proposal to allow Cairn, the operator of Sangu Gas field, to sell its gas to any third party within the country.
Petrobangla is likely to sign contract with the Cairn so that it could collect rig by December to go for drilling in South Sangu to tap 30 to 50 mmcf gas. Earlier, the company informed Petrobangla to sign contract within June 30 otherwise it would not be able to go for drilling any appraisal well at South Sangu this winter.
In August 2009 Energy Ministry approved Cairn Energy for selling gas to third party other than Petrobangla produced from Magnama and Hatiya, Cairn completed the 3D seismic survey there, although, it will take some time more for analysing the data.
Petrobangla's PSC cell said as per condition set by them,Cairn has to submit a report to Petrobangla where it will give every details of the sale agreement between the third party and Cairn including the gas price. And, if Petrobnagla agrees to buy the gas as per proposed price than Cairn would have to sale the gas to Petrobangla. However, Petrobangla will get 30 days to take its decision in this regard.
Source: Bangladeshinfo