According to a well placed source in the energy ministry, reviewing the BGFCL's proposal for hiring GSM, the BB noted that the troubled well-3 was now more or less stable, and so there was no hurry for an unsolicited deal.

The BGFCL should go for an open tender in compliance with the government policy, the BB advised.

As a result, the BGFCL's $3.5 million deal with GSM to kill well-3 using a snubbing unit has fallen flat. The BGFCL has verbally conveyed the decision to GSM, the source pointed out.

"We thought we have made a good low-cost deal with GSM. I don't know if we would be able to get a better deal through a tender now," notes an official.

Though the BB decision stops an immediate remedial action at Titas -- where gas leakage through various points in the ground was reported by locals more than three years back -- this also gives the BGFCL some time to rethink whether the remedial task should cover more work than just fixing well-3.

The GSM deal only focussed on well-3 that was leaking huge gas since late 2003. The Bapex undertook a remedial action on April 13 this year, and after a couple of days' operation, it did not proceed further fearing explosion. But eventually the unfinished intervention improved the well's condition with gas production from that well shooting up to 32 million cubic feet per day (mmcfd) from 15 mmcfd previously. The well is still leaking more than 1 mmcfd gas.

Experts of the BGFCL and Bapex say the problem with well-3 is far from over. "The well head gas pressure is around 1,000 pressure per inch (PSI) whereas that at other wells is 1,800 PSI," said a top official. "In other words, source of the well-3 problem is still there, though externally it looks better than before."

He went on, "Again nobody can say it for sure that well- 3 alone is the source of gas leakage in Titas area. You must remember gas is leaking through the ground at places that are two to four kilometres from well-3. Our experts as well as those of Chevron and PTTEP believe that there might also be some other sources of the problem."

Another official said, "We are living with fire, and we must immediately reduce the level of risk with well-3."

Against this backdrop, prior to a remedial action there should be a proper assessment of Titas field's problems. Some of the field's 16 wells have developed troubles and these need to be addressed as well.

"The BGFCL has struck a deal with the Bapex to conduct a 3 dimensional seismic survey, which will reveal the health and actual reserve condition of the field and help us understand the problem. But that is very time consuming. We need to do something fast," the official added.

Sparse gas leakage through various points in the ground in Brahmanbaria had been noticed for the last three to five years. But since the last dry season, the situation has become alarming. Local villagers and farmers had told The Daily Star in February that gas was leaking from more than 3,000 big holes-- including some 30-foot diameter holes-- in IRRI paddy fields, water bodies and the Titas river. Gas emitted through some of the holes are burning with high flames.

Titas field produces 400 mmcfd gas as against the country's total gas demand of 1500 mmcfd. Discovered in the early sixties by Shell oil, Titas was estimated to have a gas reserve of 5.12 trillion cubic feet (after four decades it now has 2.78 tcf).