07-09-08 UK-based Cairn Energy plans to invest nearly $ 9.5 mm to try to find more natural gas at Bangladesh's only offshore field at Sangu, which may be commercially exhausted by the end of next year, a senior energy official said.
"The firm has submitted a proposal to us to allow them to spend up to $ 9.5 mm for continuing gas production from the offshore till 2011," said Mohammad Muqtadir Ali, a director of state-run oil, gas and mineral corporation Petrobangla.

So far Cairn has invested about $ 1 bn in Bangladesh, including nearly $ 600 mm in Sangu, which began producing gas in 1998, officials said. In August, the oil company informed Petrobangla the field was now left with a recoverable gas reserve of just 14 bn cf which would be exhausted by September, 2009.
"The company will spend money to perforate two wells and install two compressors produce 9.30 bn cf more gas," Muqtadir told.

A Cairn official said the firm might receive a decision from Petrobangla after a joint management panel meeting.
"We have to take a decision quickly, as hundreds of manufacturing factories in Chittagong (port city area) depend on gas supplies from Sangu," the official said.
Production from the field at the beginning was around 200 mm cfpd and has now slumped to below 50 mm cfpd, resulting in a severe gas shortage in the region.