The government finally awarded contract to Russian gas-major Gazprom for drilling five onshore gas wells, skipping tender process for the second time, official sources said.
Under the unsolicited deal, the Russian firm will be paid US$ 98.19 million for the drilling in three state-run gas-fields. Experts termed the amount exorbitant in the current global context.
The foreign firm will drill Srikail-4, owned by Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), Bakhrabad-10, owned by Bangladesh Gas Fields Company Ltd (BGFCL), and Rashidpur-9, 10 and 12, under Sylhet Gas Fields Ltd (SGFL).
The Gazprom International Investment BV inked deals with three wholly-owned subsidiary companies of the state-run Petrobangla on Friday to initiate drilling in these wells, Petrobangla Chairman Istiaque Ahmad told the FE.
Gazprom will drill the gas wells under the Speedy Supply of Power and Energy (Special Provision) Act 2010, which has awarded the government sweeping authority to bypass existing legislation in the energy and power sector in order to implement projects quickly.
Under the law, all types of power and energy projects, including the import of natural gas, coal, LNG and petroleum products as well as the extraction of mineral resources, can be railroaded without following the usual tendering process.
The legislation states that any activity which comes under its purview, or any official or employee implementing such activities, cannot be subject to any legal challenge.
The law allows parties interested in power and energy projects to enter into contracts through negotiations with a 'special committee'.
Gazprom was earlier awarded a 10-well drilling job, bypassing tender, under the same law in April 2012 to drill wells in gas-fields, owned by three subsidiaries of Petrobangla, at a cost of $193.5 million.
"I don't know why Gazprom has been awarded the well-drilling projects over and again without tendering," said Professor M Tamim of Bangladesh University of Engineering and Technology (BUET).
Had the tendering been there, the government could save at least around $25 million for drilling five onshore gas wells by any reputed international firms, he told the FE on Monday.
Mr Tamim, also a special assistant to former caretaker government, sees the deal with Gazprom either as outcome of a 'political consideration' or a ploy to serve the interest of a 'vested quarter'.
It has been done without ensuring any benefit for the country, the professor alleged.
Besides, Gazprom's previous drilling job did not yield any satisfactory outcome, he added.
Bapex managing director Md Atiquzzaman told the FE: "As per the contract the Russian firm is supposed to complete drilling within 15 months."
He did not comment as to why Gazprom was awarded the drilling jobs, leaving the state-run oil and gas exploration firm almost idle.
Currently Bapex is at loose ends, having no new drilling job in hand, said sources.
Gazprom never took part in the bidding rounds that Bangladesh launched for oil and gas exploration.
It happens to be first foreign firm to operate in Bangladesh on a contractual basis. It does not have any share in natural gas production.
Other international oil companies active in Bangladesh operate under production-sharing contracts or joint ventures with Bapex.
The country's natural gas production is hovering around 2,700 million cubic feet per day (mmcfd) against the demand for over 3,200 mmcfd.
Bangladesh is entirely dependent on onshore gas production, as it has no offshore fields in operation, as of now.
mazizur.rahman@outlook.com
