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(Image courtesy of Santos)

Production at Bangladesh’s only offshore gas field, Sangu, ceased permanently on Tuesday due to commercially unviable levels of production.

“Santos, an Australian oil and gas exploration company, the operator of the field officially informed us about the closure,” said Mohammad Imaduddin, director of state run Bangladesh Oil, Gas and Mineral Corporation or Petrobangla.

the Sangu field was only producing around 2.5 million cubic feet gas a day, a senior government energy official said. This output falls far short of the 15 million cubic feet gas a day that Santos had said the well required to be economically viable for the company.

Sangu’s history began in 1994 when Cairn started to drill the field and started production in 1996 and sold 50 percent of its share to Shell. Later Shell sold its share back to Cairn again and in 2010 the latter sold the field to Santos.

When it started, the field was producing up to 180 million cubic feet of gas a day.