The government has increased contract prices for the drilling of four wells by Russian energy giant Gazprom under the Energy Division’s fast-track measures.
The Cabinet Committee on Public Purchase yesterday gave its consent on an Energy Division proposal on increasing the price. The meeting was presided by Industries Minister Amir Hossain Amu in the absence of Finance Minister AMA Muhith.
The cabinet committee also approved another Energy Division proposal for appointing a consultant to conduct a feasibility study for extracting methylene gas from the Jamalganj coal mine.
After the meeting, Cabinet Division Additional Secretary Mostafizur Rahman said contract prices will increase for Gazprom’s sister concern Gazprom Investment BD for drilling four wells under the Bangladesh Gas Field Company Limited (BGFCL) and Sylhet Gas Fields Limited (SGFL).
“As per the latest proposal of the Energy Division, the contract price for Gazprom will be increased by $17m from previous contract price of $100m,” he said.
Mostafizur added that an Indian firm named Mining Association Private Limited would conduct the feasibility study in Jamalganj.
Earlier this year, the Energy and Mineral Resources Division approved a proposal for Gazprom to drill the four wells – Bakhrabad 10, Rashidpur 9, 10 and 12.
The move came even though Petrobangla reportedly got poor output from the same company for the drilling of 10 onshore gas wells, despite paying the company $193.55m or about Tk1,500 crore so far, sources said.
In April 2012, the BGFCL, SGFL and Bapex signed contracts with Gazprom under Speedy Supply of Power and Energy (Special Provision) Act 2012 – to drill the 10 wells in five fields.