Thursday, 2 February, 2023

Oil and Gas Exploration

Govt to invite offshore bidding in January

  • Special Correspondent
  • 5 December, 2022 12:00 AM
  • Print news

The government will invite the offshore bidding round 2022 next month to explore oil and gas in the Bay of Bengal.

It was, however, a plan to introduce it in the current month.

“We have a plan to invite the bidding round in January, 2022 after reviewing the model production sharing contract this month,” Energy and Mineral Resources Division Senior Secretary Md Mahbub Hossain told a seminar on Saturday.

He said the multinational companies had not been interested previously due to the site not being lucrative.

Hossain, however, said the Division was also conducting 2D and 3D seismic surveys in the onshore gas fields to get maximum output from it.

“We are now concentrating on a short term plan to overcome the present crisis,” he added.       

Petrobangla Chairman Nazmul Ahsan said that Petrobangla already assigned an international consultant, Wood Mackenzie, to review the existing model production sharing contract (PSC) and get a draft on it.

The PSC will be reviewed by evaluating the upper limit and lower limit of gas tariffs placed by Myanmar, Thailand and India, the Petrobangla chairman earlier said.

Currently, Indian Oil and Natural Gas Corporation (ONGC) is working on two blocks on offshore blocks.

In the south, Bangladesh has the gas prospect. The Indian company is hopeful of new prospects in the Titly well during the upcoming dry season, according to Petrobangla officials.

ONGC has already invested Tk 1.75 billion at Kanchan. “They are hopeful of recovering the investment from the new well at Titly,” Nazmul Ahsan said.         

He also noted that state-owned BAPEX does not have the capacity to explore the offshore wells.

“But we will fix 10 percent carried over share to BAPEX in the next PSC,” he added.

“Not a single international oil company has shown interest to explore our areas under the existing PSC so far,'' Petrobangla chairman said, expressing disappointment.

Talking about Petrobangla and its challenges,  said, Petrobangla’s main task is to ensure the supply of primary energy.

“We supply energy to electricity, fertiliser and industries.”

“Our proven natural gas reserve was 29-30 tcf. We have already extracted 20 tcf and there are 9 to 10 tcf remaining.”

The Petrobangla is now working to drill 46 wells to get 618mmcfd output by 2025.