BAPEX advised to form jt ventures with IOCs

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M Azizur Rahman
The state-owned Petrobangla has asked its subsidiary, the Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), to consider joint ventures with the international oil companies (IOCs) to conduct exploratory activities in its 'reserved' areas having complicated structures.
The Petrobangla in a letter to BAPEX Monday also asked the latter to prepare suitable terms of reference (TOR) for going into joint ventures with the IOCs to develop the gas fields having risky and complicated structured in the 'ring fenced' areas to reap the maximum benefit.
The TOR must be transparent and should protect national interests, the Petrobangla letter said.
Sources said the Petrobangla's latest letter to the BAPEX has come in contrast to what had been said in its previous letter dated July 25. The Petrobangla in the previous letter had asked the BAPEX to consider opening up all of its reserved areas and two exploration blocks for joint venture agreements with the IOCs.
The BAPEX's reserved or ring-fenced areas include Sitakundu, Patia, Jaldi, Kapatia, North Bhairab, Hazipur, Kamta, Patharia and Mobarakpur
The BAPEX officials consider Sitakundu, Patharia, Mobarakpur and Jaldi complicated structures.
Sources said the Sitakundu structure, which is located in block 15, has 48 gas seepages and three oil seepages in the surface and the IOCs had drilled four wells there around a century ago and the Petrobangla drilled one in 1983.
The Patharia field is located in block 22, while Mobarakpur is located in block 3.
As BAPEX has no significant expertise to conduct exploratory activities in areas having complicated structures, the Petrobangla has asked to explore these fields under joint ventures with the interested IOCs to enhance gas supply in the coming years, said a senior Petrobangla official.
The ever-increasing gas demand has also prompted Petrobangla to ask the BAPEX to go for joint ventures to help beef up gas production.