Project Profile
Value: US$150 million
Location: offshore Bangladesh, Bay of Bengal
The Sangu field has produced more than 400 billion cubic feet since production began in 1998. The Sangu joint venture, in which Cairn is the operator with a 75% interest, has generated gross revenue of about US$800 million. The Sangu partners deliberately over-sized the field’s production facilities and these are capable of handling 500 MMcfd of gas. The output at Sangu peaked at 200 MMcfd but the field is in natural decline and now produces just about half of that, offering plenty of spare capacity. More wells will be drilled.
Block 16 is located within the proven Mio-Pliocene gas play fairway of the Bay of Bengal. It is surrounded by gas discoveries. The Sangu Gas Field, located 45 km SW of Chittagong, was discovered in 1996. The field was brought on stream in 1998 and is the only offshore producing field in Bangladesh.
In October 2007, Santos acquired from Cairn Energy PLC a 37.5% interest in the Sangu Development Area and a 50% interest in Block 16 exploration acreage, located in the Bay of Bengal, Bangladesh. In December 2010, Santos acquired the remainder of Cairn\'s interests in Bangladesh, and became operator of the acreage.
Santos commenced an extensive exploration, appraisal and development program in September 2011 to increase gas supply through the Sangu facility to the Chittagong gas market.
Halliburton holds the remaining 25% of the Sangu project, while Block 16 is 100% owned by Santos.
The company plans to expand the field by drilling new exploration wells in 2011.
Operators:
Santos: Operator with 75% interest of the Sangu project and 100% interest in Block 16
Halliburton: 25% interest of the Sangu project
Contractors:
Seadrill: Drilling contractor