Two international oil companies (IOCs) yesterday submitted expressions of interest (EOIs) to explore and develop oil and gas resources in Bangladesh’s deep sea blocks DS 12, DS 16 and DS 21.
On February 4, state-owned Petrobangla invited expressions of interest to explore and develop three deep-sea blocks in the Bay of Bengal under the Speedy Supply of Power and Energy (Special Provision) Act, 2015.
Unlike usual bidding rounds, the government will purchase oil and gas in the Bay of Bengal at a competitive price, to be quoted by the IOCs in bids.
In previous bidding rounds, Petrobangla fixed the prices for oil and gas in model production sharing contracts (PSC) before bid launching.
Singapore-based Kris Energy and South Korean Daewoo International Corporation submitted EOIs for the deep sea blocks. The submission deadline was February 25.
A Petrobangla official said Daewoo International had explored gas in Myanmar’s Shwe gas field which is adjacent to Bangladesh’s deep sea block 11.
Myanmar’s AD 6 gas block is near Bangladesh deep sea block 10.
“We have received EOIs from two IOCs. Companies deemed best suited to do the work will be short-listed. Request For Proposal (RFP) documents will be sent to the short-listed companies,” Petrobangla Director (PSC) Md Quamruzzaman told the Dhaka Tribune yesterday.
He said the contractor would bear all costs. Cost recovery will be subject to the discovery of petroleum.
In January 2014, US oil company ConocoPhillips and Norway’s Statoil jointly submitted bidding documents to explore oil and natural gas in three deep-sea blocks in the Bay of Bengal – blocks 12, 16 and 21 – under the amended model PSC of 2012.
On February 18 last year, the Cabinet Committee on Economic Affairs awarded a contract to a joint venture of ConocoPhillips and Statoil to conduct the exploration in three deep-sea blocks in the Bay of Bengal.
ConocoPhillips, however, later pulled out of the joint venture leaving Statoil to operate alone.
Statoil is seeking amendments to the PSC to increase the price of gas. The government has not yet announced its decision on the matter, but an EOI has been sought.
Dhaka University Geology Professor Badrul Imam told the Dhaka Tribune yesterday: “We are yet to award deep sea exploration work despite many years of efforts. It should be awarded soon.
“Daewoo has been working in Myanmar. Both Daewoo and Statoil are good choices.”
