Bangladesh Oil, Gas & Mineral Corporation (Petrobangla

1 1An Introduction to the Gas Sector & production sharing ContractBangladesh Oil, Gas & Mineral Corporation ( petrobangla ) April 30,20082 Emergence of PetrobanglaBangladesh Mineral Oil & Gas Corporation (BMOGC) was created through PO #27 on March 26, operation segregated & vested to BMEDC, through PO #120 on Sept. 27, Bangladesh Oil & Gas Corporation (BOGC) was short named petrobangla through the Ordinance #15, on August 22, , Refining & Marketing of crude & petroleum products vested with BPC through Ordinance #88, on November 13, & BMEDC merged to form Bangladesh Oil, Gas & Mineral Corporation (BOGMC), by the Ordinance #21 of April 11, modification of the Ordinance by the Law 11 of February 1989, the corp. was short named petrobangla & given the authority to hold the shares of the companies dealing in oil, gas & minerals exploration and development.

2 3 petrobangla s VisionTo Provide Energy for the Sustainable Economic Growth and Maintain Energy Security of the Country. To Provide Energy to All Socio - Economic Groups in All the Areas of the Diversify Usage of Indigenous Contribute Towards Protection of Environment of the Country4 petrobangla sMissionTo Expedite Exploration and Exploitation of Oil, Gas, Coal, and Mineral ResourcesTo ensure conservation of energy through judicious use To Carry Research and Development in the Field of Exploration and Exploitation of Energy and Mineral ResourcesTo Promote CNG and LPG for Protection of Environment To Encourage Foreign and Private Investment in Oil, Gas and Mineral SectorInstitutional Capacity Building for Achieving the Goals and Objectives 5 Sylhet Gas Fields Petroleum Expl. & Prod. Co. Gas Fields Co. Coal Mining Co. Prakritic Gas Co.

3 Gas T & D Co. Trans. Co. Gas Co. Gas T & D System Gas Sys. Mining Co. LtdEnergy & Mineral Resources DivisionPETROBANGLA ProductionMiningCNG & LPGD istributionExploration & ProductionTransmission6 GAS MANAGEMENTGAS MANAGEMENTPGCLCONSUMERJGTDSLTGTDCLBGSLCO NSUMERCONSUMERCONSUMERSGFLBAPEXTULLOWCAI RNCHEVRONNIKOBGFCLGTCL7 PGCL3%JGTDSL4%BGSL18 %TGTDCL75%DistributionTeaCNGD omestic ConsumptionTullow4%Niko0%Cair n5%SGFL11%B A PEX3%Chevron35%BGFCL42%ProductionTGTDCL2 2%JGTDSL3%BGSL5%GTCL70%TransmissionGasSu pply Chain8 Fieldwise production Capacity 45012 Bibiyana18387051002307017111853977035246 34405 Capacity (MMSCFD)IOCs915 MMSCFDP etrobangla Companies923 MMSCFDT otal79 Total:2 Bangura3 Feni4 Moulavibazar4 Jalalabad6 Sangu1 Fenchuganj2 Saldanadi2 Beanibazar5 Rashidpur6 Kailastila2 Sylhet1 Meghna2 Narsingdi9 Habiganj4 Bakhrabad14 Titas Producing WellsGas Fields 9 Gas production and Consumption Data April 23, 20081368 Comp-totalTGTDCL3535 Narsingdi69 Power147230 JallabadAmountSectorGas Mkt.

4 CompanyAvailable ProductionProduction CapacityFields 1812 Total17921838 Total860 Non-bulk186 Fertilizer886915S-Total (IOCs)766 PowerOverall6970 Bangura79 Comp-total55 Feni10 Non-bulk528450 Bibiyana0 Fertilizer76100 MoulavibazarPGCL89 Comp-total6160 Sangu35 Non-bulk906923S-Total (PB)10 Fertilizer1917 Fenchuganj44 PowerJGTDSL1211 Salda276 Comp-total5353 Rashidpur135 Non-bulk9697 Kailashtilla65 FertilizerBGSL67 Sylhet77 Power00 Meghna681 Non-bulk245246 Habiganj111 Fertilizer3334 Bakhrabad576 Power397405 TitasUnit: mmscfd10 Gas Reserve Vs production (As of December 2007) RemainingProductionProven RecoverableProven Gas in TCF(GIIP)11 Sector wise Daily Demand Forecast(GSMP-2006 : Base case)3818161827819212019-203509152727817 042018-193240144227815192017-18303013642 7813882016-172853128727812882015-16 2669121527811772014-15251811442781097201 3-14234010762789862012-13215810082788722 011-1220229322788122010-1118968442787742 009-1017257642726882008-0916196892726582 007-08 TotalNon-BulkFertilizerPowerFY(MMSCF)12 Company wise Daily Demand Forecast(GSMP-2006.)

5 Base case)303017410414962419792016-1738182541 8516880224092019-20350924311015577222292 018-19324017810715169821062017-182853129 11615256018952015-16 266911510818054417232014-152518130116117 53816172013-14234013211511646415132012-1 3215812010911545113652011-12202212897106 41612742010-11189680849734612892009-1017 2574838831211682008-09161918488294115220 07-08 TotalS&SWPGCLJGTDSLBGSLTGTDCLFY(MMSCF)13 3823148837519602016-17456717753752417201 9-204303167337522552018-1940451577375209 32017-183600140337518222015-16 3435136037517002014-15322412613751588201 3-143021117137514752012-1328471088325143 42011-122620101132512842010-112370890289 11912009-1020188432898862008-09190080128 98102007-08 Total OthersFertilizerPower FY(MMSCF)Sector wise Daily Demand Forecast(By petrobangla -2007)14 Company wise Daily Demand Forecast(By petrobangla -2007)456755542680827782019-2 0430355034478826212018-19404554531674424 402017-18382354129070222902016-173600538 26366021392015-16 343548023765620622014-153224421235636193 22013-14302141623456318082012-1328473632 3349117602011-12262024923247516642010-11 237021013746315602009-102018941274131384 2008-0919007612236213402007-08 Total PGCL+ S&SWJGTDSLBGSLTGTDCLFY(MMSCF)15 Projected Daily Gas production by petrobangla (MMSCF)1798187520141985196519 43188817251595142712401042991 Total13313818420524023825827024019614162 49 BAPEX66066066061055053047537030030022319 9202 SGFL100510771170117011751175115510851055 931876781740 BGFCL2019-202018-192017-182016-172015-16 2014-152013-142012-132011-122010-112009- 102008-092007-08 COMPANY16 Projected Daily Gas production IOCs(MMSCF)

6 2019-202018-192017-182016-172015-162014- 152013-142012-132011-122010-112009-10200 8-092007-08 CompanyIOC-1 (Existing Fields)100120120125130135140145150556065 70 Cairn00001515202530304566 Niko107010901110115511951240127013201360 1310128010761061 Sub-Total1001001001001001001001001001001 0010080 TullowIOC-2 (Expected from Contracted Blocks)870870890930950990101010501080112 51075905905 Chevron500500500500300000000 Sub-Total 1970199020102055189516401670167014601310 128010761061Gr. Total IOC-3 (Expected from 3rdRound Bidding)4004004004004004004003501000000 Sub-TotalIOC -1 + IOC 2 + IOC - 3 Total EPCairnChevron10010010010010010010050000 0010010010010010010010010000000200200200 200200200200200100000017 Projected Demand - SupplyBalance(MMSCFD)2868296531243140316 031833158304529552737252021182052 production (PB + IOC-1)4502433042504126401837963587345831 422749238322612006 Demand2019-202018-192017-182016-172015-1 62014-152013-142012-132011-122010-112009 -102008-092007-08 EventsBalance-1634-1365-1126-986-858-613 -429-413-187-12137-14346 Reserve basis:P1 + P2 of Existing fields + Sundalpur + Bibiyana Expansion + Magnama.

7 18 Current Reserve Categories Supply Demand Balance010002000300040005000600020052007 200920112013201520172019202120232025 Gas mmcfdProvedProbablePossibleCase B DemandShortfall would commence in 2011 against Proved ReservesShortfall would commence in 2011 against Proved ReservesRef: GSMP 200619 Gas InfrastructureNalkaKhulnaRajshahiWest Zone Proposed Gas Pipeline540kmCompressor Stations MuchaiAshuganj(West)Ashuganj(South)Eleng aExistingTotal Capacity : 2,000 MMCFDT otal Length : 1,900 Kilometer Future Expansion: Capacity : 1,000 MMCFDL ength : 850 Kilometer Size: 12 inch to 30 inch pipeline is planned to construct by 2011 to cover Rajshahi and Khulna addition 4 compressor stations will be installed at Muchai, Ashuganj (south), Ashuganj (west) and Elenga by 2011 to boost up pipeline pressure. Gas Pipeline Network20 Major TransmissionPipelines4252003502502002702 00500500350 Capacity(mmcf)2006/200710002060 Dhanua-Aminbazar200610003037 Ashuganj-Monohordi2005198219851999199220 012002/200419981993 CommissionedIn the year96024175 Bakhrabad-Chittagong1000[30,20][6+54]=60 Nalka-Bogra10002068 Bakhrabad-Demra1000[24,30,24,20][14+9+16 +35]=74 Elenga-Baghabari100024124 Ashuganj-Elenga11352018 Beanibazar-Kailashtila113530,14[75+82]=1 57 Rashidpur-Ashuganj10003058 Ashuganj-Bakhrabad113524175 North-SouthMaximum Allowable Operating PressureNominalDiameter(Inches)Length(Km )Pipelines21 Transmission Projects under Implementation30 x235kmADBDec 2011 Ashuganj-BKB-CTG Trans.

8 Pipeline(under active consideration of ADB)30 x60kmWBJune 2010 Bakhrabad Siddirganj 24 x14kmADB/GOBJune 2010 Pipeline from Titas field to A-B pipeline20 x165kmADBJune 2011 Bheramara-Khulna PipelineSizeFunded ByCompletion TimeProjects12 x51kmADBJune 2009 Bonpara-Rajshahi Pipeline30 x87kmADBJune 2010 Hatikamrul-Ishwardi-Bheramara Pipeline10000 hpADBJune 2011 Elenga CompressorExpansion to West ZoneBB Corridor Expansion30 x51kmADBJune 2009 Monohordi-JMB East Loopline18000 hpADBDec 2011 Ashuganj Compressor Station12000 hpADBDec 2011 Muchai Compressor StationNorth-South System Expansion22130 June-Dec. 08 BanguraTullow115 May-June 08 Fenchuganj #2 BAPEX1 Dev. 08 BKB # 2, 5 BGFCLP roduction (MMSCFD)PeriodWellCompanyProduction Augmentation ActivitiesProduction Augmentation Activities(2007(2007--08 to 200808 to 2008--09)09)23110 July-Sept. 09 BKB#9 BGFCL120 May-Aug 09 Shahbajpur 11 SrikailBAPEX115 Aug-Nov 09 Meghna#1 BGFCL130 Jan-June 10 BegumganjBAPEX125 May-Aug 10 Titas # 18 BGFCL125 Jun-Oct 10 Kaillastila # 7 SGFL125 Sep-Dec 10 Habiganj # 12 BGFCL5 Dev.

9 Well6255 Total125 Jan-Mar 10 Titas # 17 BGFCLP roduction MMSCFDA ppraisal Well/WorkoverPeriodWellCompanyProduction Augmentation ActivitiesProduction Augmentation Activities(2009(2009--10 to 201010 to 2010--11)11)24 CairnTotal EP & JVCairn-ChevronCompany200 Nov 08 June 12 Exploration in Block # 5,7,10 100 Nov 08 June 12 Exploration Drilling of Magnama & Hatiya Structure300 - 5002009-2016 Bangladesh Offshore Bidding Round 200850 - 100 Nov 08 June 12 Exploration in Block # 17 & 18 (3-D Seismic followed by exploration drilling) production MMSCFDP eriodProgramsProduction Augmentation Activities production Augmentation Activities (Long term) (Long term) 25 PSC ACTIVITIES-SOME DEFINITIONSC oncessionA license, lease, or other permit for exploration and/or production in an area or block. It usually denotes a government lease. 26 PSC ACTIVITIES-SOME DEFINITIONSJ oint Operating Agreement(JOA)The document governing operations in a Joint Venture of prime importance to all participants as under it they secure or may lose, rights to production typical Joint Operating Agreement will include sections to cover most or all of the following topics:-Scope, Duration, Legal Status -Interest rights and duties of the Operator and other participants-Management Structure and voting procedure-Approval of Operating Programmes and Budgets-Cash contributions, costs and accounting-Control and custody of joint properties and equipment-Sole Risk,Default,Withdrawal,Assignment etc-Disposal of Petroleum-Confidentiality,-Force Majeure,Litigation etc.

10 27 PSC ACTIVITIES-SOME DEFINITIONSJ oint Venture: A common form of risk- sharing in Oil and Gas operations, especially exploration and production . Although they may have many of the characteristics of partnerships and are often referred to as such, they are usually legally constituted specifically to avoid partnership ACTIVITIES-SOME DEFINITIONSP roduction sharing contract :A contract between a host government and petroleum company for the exploration and production of petroleum resources where the company's costs are recovered from a percentage share of production and the balance is shared between the government and the Contracts These slides are taken from the Training materials of IHRDC,Boston,MA,USA303132333435363738394 041424344454647 Exploration of Hydrocarbon in BangladeshBangladesh is one of the Largest Area is Mostly Covered by Alluvial and Delta Plains, but has some Hill Areas in the Northeast and Southeastern Exploration Activities Started in Bangladesh Territory Since 1908.