DHAKA, Bangladesh, Jan. 24 (UPI) -- Russian natural gas company Gazprom plans to drill 10 wells in Bangladesh in collaboration with a state-owned company, an executive said.
The government in Bangladesh in mid-January approved of a plan by Gazprom to drill 10 wells in the country with state-owned Petrobangla. Gazprom becomes the first foreign company to sign a deal with Petrobangla without a production-sharing contract.
"We have inked the initial agreement after finalizing the draft of the agreement," Petrobangla's executive Hussain Monsur told the Platts news service.
Gazprom aims to drill wells in the Titas and Rashidpur natural gas fields. Titas is production around 444,000 cubic feet of natural gas per day while Rashidpur is producing only 48,000 cfd, according to Platts.
Proven reserves in eastern Balgladeshhold an estimated 1.4 trillion cubic feet of natural gas.
Petrobangla aims to make up for energy shortfalls in the country. It's producing about 80 percent of the natural gas needed to meet domestic demand. The Bangladeshi economy has grown about 6 percent a year since 2003.
Gazprom said it would pay 5 percent of the costs of working in Bangladesh.
