Gazprom eyes new energy projects without competitive bidding

Gazprom, the Russian state-owned energy company that benefitted from drilling contracts worth billions of taka in Bangladesh lacking competitive bidding under the now-defunct special energy law, is once again pushing for a new package of gas drilling and infrastructure projects through unsolicited proposals, sources said.

Wishing anonymity, a senior official of the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources said on Tuesday that Gazprom was seeking contracts to drill five gas wells in Bhola, conduct a 3D seismic survey covering Bhola and Hatia, participate in the proposed Bhola-Barishal gas transmission pipeline, and establish a small-scale Liquefied Natural Gas (LNG) facility on the Bhola Island, The Financial Express reported.

The proposals have reached the EMRD through the Ministry of Foreign Affairs after being forwarded by the Russian embassy in Dhaka.

The move has sparked criticism because the proposals are largely based on offers originally submitted during the final years of the Awami League government, when the controversial Speedy Supply of Power and Energy (Special Provisions) Act was still in force, industry insiders say.

That law enabled the authorities to bypass normal procurement rules and award energy contracts directly, a practice widely criticised for undermining competition and price discovery.

Instead of participating in open international tenders, Gazprom is again attempting to secure strategic energy projects through diplomatic channels despite the repeal of the special law that previously facilitated such contracts, sources said.

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The Awami League government's syndicate, which had strong connections in the diplomatic arena and played a proactive role in bagging drilling jobs during the previous regime, is now active again to secure the energy sector project works for Gazprom through an unsolicited mechanism, according to allegations.

A private business person named Mia Sattar, who has been accused in a case filed by the Anti-Corruption Commission (ACC), is allegedly playing a key role in this matter.

Tying up with a private person or entity for business was a complete violation of the Vienna Convention, a senior official of the Ministry of Foreign Affairs said.

Currently, Chinese company Sinopec is carrying out a drilling programme of five wells in Bhola at a cost of around Tk9.07 billion ($74.34 million) following competitive bidding.

The drilling cost of the wells stands at around $15 million each.

Another Chinese company CNPC Chuanqing Drilling Engineering Company Ltd (CCDC) is carrying out deep drilling of several wells following competitive bidding.

Gazprom never took part in any competitive bid to get 20 well drilling jobs in the past, they said.

The Russian company drilled each well at an average cost of around $19 million within the jurisdiction areas of Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), Bangladesh Gas Fields Company Ltd (BGFCL), & Sylhet Gas Fields Ltd (SGFL) previously, which was much higher than the costs faced by other companies, according to allegations.

The renewed Russian interest comes as Bangladesh faces mounting pressure to secure affordable energy supplies amid elevated global fuel prices, geopolitical uncertainty in the Middle East, and persistent concerns over the security of energy cargoes moving through the Strait of Hormuz.

Sources say the absence of competitive bidding for the wells drilled by Gazprom deprived Bangladesh of the opportunity to compare costs and evaluate competing offers from international drilling contractors.

Industry insiders allege that the proposed rates are considerably higher than what could potentially be achieved through competitive procurement, although the financial details of the latest proposals have not been publicly disclosed.

The Gazprom proposals, originally placed in 2024 during the Awami League government, stalled following the political transition that year and the subsequent repeal of the controversial special law by the interim government.