Abstract:
Exploration, development and production of natural gas in Bangladesh are of great
importancc and playa vital role in our economy. In Bangladesh. exploration activities
commenecd from thc bcgiJUling of the nineteenlh cenlllTY.Aftcr scveral phases of exploration
work by governmenl organintions and intcrnational oil companies, an overall good ~uccess
ratio in drilling has been achieved. De~pite our geologically prospective areas, exploration
and development of gas/oil reserves ha, heen limited due to technical and financial
constraints. As a resLlll, inlernational oil companies were invited to accelerate our explonllion
and development activities and hence 10meet gas demand of our country.
In the Production Sharing Contract. cosl recovery and profit oil/gas share betwecn
contractor (JOC) and Pdrobangla are describcd on the basis of daily production A detail cash
flow analysis before and after cost recovery period under various prouudlOn sehcmcs,
reserve estimales, gas prices and maximum allowabk production is vcry important regarding
operational options of Pctrobangla. In this respecl, a thoroLlgh economic analysis is e%ential
for future decision making.
This report reviews Ihe model production ~haring contract and trics to show the
sen8itivity of PSC for differenl parameters, such as initial investment, recoverable rcscrve,
yearly recovery, price of gas, operational and overhead cost etc, A detail analysis is
performed to examine the Petrobangla cash requiremenl, sLlbsidy 10 local market as ~ornpared
to IDe gas price under different scenarios,
