Bapex eyeing joint venture with IOC in offshore bidding

FE Team | Published: March 19, 2012 00:00:00 | Updated: February 01, 2018 00:00:00

M Azizur Rahman
The state-owned Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) is seeking joint venture with a reputed international oil company (IOC) to take part in the country's forthcoming offshore bidding round, a top official has said.
"We have a plan to get involved in offshore oil and gas exploration activity and any partnership with a reputed IOC will be welcome," Bapex Managing Director Mortuza Ahmad Faruque told the FE Sunday.
The Bapex is now involved in gas exploration activity only in onshore gas fields in the country with an aggregate output of around 79 million cubic feet per day (mmcfd), which accounts for around 3.85 per cent of the country's overall gas output of 2,060 8 mmcfd as on March 17, 2012.
The Bapex has now four onshore gas producing fields -- Salda, Fenchuganj, Semutang and Sundalpur -- which are now producing around 19 mmcfd, 38 mmcfd, 12 mmcfd and 10 mmcfd of gas respectively.
Petrobangla's subsidiary Bapex has one more gas field -- Shahbazpur -- from where gas production is now suspended.
The Shahbazpur field has a capacity to supply 20 mmcfd of gas.
"We are interested in joint venture with a foreign company not only to augment gas output but also to improve our expertise," Faruque said.
He said joint venture with any other state-run oil and gas exploration firm will be of preference.
"We will also be interested in joint venture with a reputed privately-owned IOC," he said.
Approval from the government high-ups will be required in this connection, he added.
The government has planned a new bidding round soon under which it will offer eight shallow-water oil and gas blocks in the Bay of Bengal.
Faruque expressed the hope that the government would help arrange necessary funding to initiate offshore oil and gas exploration with any reputed IOC as the government itself has decided to strengthen Bapex by increasing funding assistance and arranging technical supports.
Currently, the Bapex has joint venture with the Canadian Niko Resources for several onshore gas fields including Feni and Chhatak.
Gas production from Feni has remained suspended since May 2010.
A total of 22.89 billion cubic feet (Bcf) gas was produced from the Feni field during its operation from November 2004 to April 2010.
Besides, the Bapex has a 10 per cent carried interest in onshore block 7, where Chevron is the operator.
The Chevron Bangladesh has a 44 per cent stake in block 7 including the operatorship, while the South Korean oil company GS Caltex has a 45 per cent stake.
Gas production in any field under block 7 is yet to be started.
The Bapex has also a 10 per cent carried interest in onshore block 9, which is now producing around 103 mmcfd of gas from its Bangora field.
The Irish company Tullow is the operator of block 9, having a 30 per cent stake including the operatorship, while the Niko Resources has the remaining 60 per cent stake.
The Bapex has also a 10 per cent carried interest in blocks 5 and 10.
UK's Cairn Energy was the operator in blocks 5 and 10 having a 45 per cent stake.
Australia's Santos had the remaining 45 per cent stake.
Both Cairn and Santos, however, relinquished the blocks after seeing those 'nearly barren' in early 2009.
Officials said the Bapex got a 10 per cent carried interest in blocks 5, 7, 9 and 10 under the production sharing contract terms with the respective IOCs.
The Bapex is also currently in talks with the Chinese state-owned Sinopec Shengli to develop jointly four state-owned onshore gas fields under block 22 in the country's hilly region in Chittagong.