Unocal Starts Production from Moulavi Bazar Field

Unocal has started production from the Moulavi Bazar gas field in Bangladesh.

The Moulavi Bazar field is currently producing more than 70 million cubic feet of gas per day (mmcfd), from two well completions. The company plans to complete two more wells by May 2005, which is expected to increase the field's production capacity to 150 mmcfd. The Moulavi Bazar field is located in block 14 in the northeast district of Sylhet. Unocal Bangladesh Blocks 13 and 14, Ltd., is operator and, together with Unocal Bangladesh, Ltd., has a 100-percent working interest in the production sharing contract (PSC) covering the field.

"Production of natural gas from the Moulavi Bazar field is a major milestone toward energy security for Bangladesh," said Andrew L. Fawthrop, president and managing director, Unocal Bangladesh. "The Honorable Prime Minister Begum Khaleda Zia is scheduled to officially inaugurate the plant on April 5. We are extremely pleased to be able to develop the field within budget and the stipulated time frame, helping our partner Petrobangla in its mission of fulfilling Bangladesh energy needs."

Natural gas production from the Moulavi Bazar field is delivered into the existing Bangladesh national gas network. Under the natural gas purchase and sales agreement (GPSA) signed with Petrobangla in October 2003, Unocal built the gas processing plant with a capacity of 150 mmcfd and a 24-kilometer pipeline to connect the field with the national grid. Total development cost of the project, including development wells, has been estimated at US$42 million.

The company estimates the Moulavi Bazar field has a gross resource potential of more than 440 billion cubic feet of gas.

Unocal, through subsidiaries, is producing approximately 200 mmcf of natural gas per day from the Jalalabad Field on block 13 for Petrobangla. With the new production from Moulavi Bazar, gross natural gas production from the fields operated by Unocal Bangladesh for Petrobangla currently totals about 270 million cubic feet of gas per day.

In addition, Unocal has signed a GPSA to develop the Bibiyana field which is expected to add another 200 mmcfd beginning in the fourth quarter 2006. With a total expected investment of $230 million, Unocal estimates that the Bibiyana field could ultimately produce 500 mmcfd by the end of 2009.