The signing of a production sharing contract (PSC) with the US-based ConocoPhillips and India’s ONGC Videsh Ltd, to explore oil and gas at three shallow sea sites in the Bay of Bengal, is uncertain because of the country’s ongoing political turmoil.
ONGC obtained the rights to sites four and nine while ConocoPhillips got site nine after participating in an international auction, organised earlier on April 2 by the state-owned Bangladesh Oil, Gas and Mineral Corporation (Petrobangla).
“We are ready to sign the contracts with the two international oil companies. But given the country’s current political situation, this is not right time to sign it,” Petrobangla Chairman Hossain Monsur told the Dhaka Tribune.
“All procedures have been completed more than a month ago, and we have been waiting since to sign the contracts,” he said.
In September this year, Petrobangla had signed initial deals with the two companies.
Meanwhile, Petrobangla officials said the exploration would aim to meet the demand for gas in the Chittagong region, which is suffering from an acute energy shortage.
Earlier, the cabinet committee on economic affairs had allowed Petrobangla to sign the initial deals for sites four, seven, and nine with the ONGC Videsh Ltd and ConocoPhillips.
ConocoPhillips had previously gotten two deep sea sites in back in 2011, while India’s state-owned ONGC was going to operate in Bangladesh for the first time.
ONGC has reportedly offered to invest $38.4m to conduct a number or surveys and drill two wells in site 4.
The government’s profit-share would be 60%-85% for gas and 70%-90% for oil. It has also offered to invest $64.8m to conduct a number of surveys and drill three wells in site 9.
Meanwhile, ConocoPhilips has offered to invest $23.5m to conduct surveys and drill a single exploration well in block 7.
The profit-share of the government would be 55%-80% for gas and the same for oil.
