In 08 January 1984, Chhatak Field and Haripur Field was handed over to Sylhet Gas Fields Limited (SGFL) through a Vending Agreement (by the cost of 1504 Lac Takas) between the Government of Bangladesh and SGFL.
Chhatak structure is located at the north end of Surma sub-basin of the Bengal Basin. Chhatak Gas Field was discovered by drilling the well Chhatak-1 at Tengratila of Dowarabazar Upazilla of Sunamganj District in 1959. In 1960, commercial production of gas commenced for the first time in the country by supplying about 4 MMCFD (million cubic feet of gas per day) to Chhatak Cement Factory and Pulp and Paper Mills that heralded a new era in the production and use of natural gas in Bangladesh. It was a landmark in the use of natural gas as an industrial prime-mover.
Production from the well (Chhatak-1) was continued upto 1984. After an unsuccessful work-over operation, the production suspended in 1985 due to excessive water and sand. Welldrill (1991) states the well suspended possibly because of the mechanical fault.
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