Petrobangla, Bangladesh's state-run oil and gas corporation, has claimed to be "frustrated" by the revelation that Cairn Energy's Sangu gas field is running out of reserves.

Petrobangla, Bangladesh's state-run oil and gas corporation, has claimed to be "frustrated" by the revelation that Cairn Energy's Sangu gas field is running out of reserves.

Mohammad Muqtadir Ali, a director of Petrobangla, was quoted in the country's press as saying that the corporation had been formally notified by Cairn that "gas reserves at Sangu are being exhausted fast and the field may not be able to produce any gas after the end of next year".

He said Petrobangla had been "frustrated by this information but will sit with Cairn next week to try to sort out the problem".

Sangu, Bangladesh's only offshore natural gas field, has been in production since 1998, but Cairn has warned in its annual reports that its life is now limited.

Cairn was reported to have told the government that it needed to be allowed to invest $10m (£5.3m) in various wells in order to extend the field's life by another two years, and to be allowed to sell gas from new fields at higher prices.

A spokesman for Cairn declined to comment on the report other than to say: "We have made it clear that the shelf-life of Sangu production is limited."