CAPITAL: Dhaka

MONETARY UNIT: Taka

REFINING CAPACITY: 33,000 b/cd

OIL PRODUCTION: 2,000 b/d

OIL RESERVES: 10.615 million bbl

GAS RESERVES: 10.6 tcf

Bangladesh`s first offshore gas field went on stream in mid-1998.

Sangu field began feeding about 160 MMcfd into the Bangladesh grid. Production was due to rise to 200,000 MMcfd by mid-1999, providing 20% of domestic gas production.

Owners of the field, on Exploration Block 16 in the Bay of Bengal, were Carin Energy plc 56.25%, Halliburton 25%, and Shell 18.75%. They brought the field on stream a little more than 2 years after the discovery well was drilled.

OIL companies criticized Bangladesh state-owned Petrobangla about a tender for exploration acreage.

They said the tender was delayed months, and high bids for some of the key blocks were rejected.

Petrobangla Chairman Mosharraf Hossain said awards were made on merit and the same procedures and principles would be used in future licensing rounds.

In March 1997 Bangladesh asked for bids in its second licensing round to be submitted by July. Awards were planned in December 1997 but delayed until July 1998.

Although 22 companies submitted bids, only five of 15 blocks were awarded. Three blocks drew no bids.

Government officials said Bangladesh had proven gas reserves of 10.5 tcf and possibly as much as high as 50 tcf.

Unocal Corp. and other oil and gas companies were trying to persuade the government to consider exporting gas to India. They argued the major market for the gas was India, especially Calcutta and Delhi.

Bangladesh increased efforts to prevent power shortages and public protests about regular blackouts.

Prime Minister Sheikh Hasina Wajed fired Energy Minister Noor Uddin Khan, took charge of the energy and mineral resources ministry, and ordered 11 power stations reopened. The plants would produce 400 MW on an emergency basis.

She also allowed private companies to enter the power generation business if they established plants of at least 10 MW.

The government was embarrassed by a nationwide power shortage that even darkened the house of parliament during a debate.

The government blamed a shortage of natural gas to fuel power stations and sent the armed forces to monitor supply and demand.