Russian Gazprom is eyeing a big role in Bangladesh's hydrocarbon sector under a joint venture (JV) with the latter's state-run oil and gas exploration company on a government-to-government basis.
The Gazprom submitted a formal proposal to the state-owned Petrobangla recently to create the JV with the latter's wholly-owned subsidiary Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), according to officials.
A senior Petrobangla official has said under the planned JV between Gazprom's subsidiary Gazprom EP International Investments BV and BAPEX, the Russian firm has planned to implement projects in exploration, development and production of hydrocarbon in Bangladesh and other countries. They can do it under production sharing contracts (PSCs), licences, service contracts or anything other means.
According to the terms and conditions set in the proposal, the Gazprom is interested in work like drilling in Bangladesh and other countries.
The JV activities also include providing services on exploration, development, production, transportation, refining and marketing of oil and gas and their by products.
Gazprom also intends to render consultancy and design services in the oil and gas industry.
It also eyes implementation of oil and gas projects jointly in supply and utilisation of natural gas as motor fuel, according to the official.
Gazprom also intends to design and implement projects concerning gas distribution systems and the networks of petrol stations.
It also aims for design and construction of oil, gas and electricity facilities.
The Russian firm also eyes implementation of liquefied natural gas (LNG) projects jointly.
Officials said Gazprom never took part in the bidding the South Asian country launched for oil and gas exploration.
But it completed a 10-well drilling programme costing around $193.5 million (19.35 crore) in state-run gas fields owned by three gas subsidiaries of Petrobangla as a drilling contractor in November last year.
Other international oil companies active in Bangladesh operate under production sharing contracts or joint ventures with Bapex, a senior Petrobangla official has said. The chief of the Gazprom International Valery Gulev earlier expressed the interest during a meeting of a Gazprom delegation with Bangladesh Prime Minister Sheikh Hasina in Dhaka in July last year.
The Russian side then expressed its interest in this initiative and the readiness to carry out comprehensive analysis and required consultations at the earliest opportunity.
Gazprom is interested to work with BAPEX for exploration of gas in the country's plain land, hill tracts and offshore areas.
Officials said the visit of the Chief Executive Officer of Gazprom over joint exploration in the oil and gas sector was the sequel to a series of meetings and visits by delegations of both the countries.
Bangladesh in September 2013 sought US$ 2 billion in loan from Russia at an interest rate of less than 2.0 per cent for funding development of its onshore gas fields.
It sought the funds to drill 41 wells, comprising 13 development, 8.0 appraisal, 13 workover and seven exploratory wells, in the Titas, Bakhrabad, Kamta, Bhola, Haripur, Koilashtila, Biani Bazar, Chittagong and Rashidpur gas fields.
It also wanted to build 12 gas processing plants at the fields and 45 gas compression stations and generators, comprising 33 wellhead gas compressors, 10 gas generators, a fractionation plant and a gas compressor at fields operated by the state-owned gas entity, they said.
Separately, the country is currently working with Russian state firm Rosatom to build two 1,000 megawatt (MW) capacity nuclear power plant at Rooppur, about 132 miles north of Dhaka, with Russian help.
The country is currently grappling with an acute gas crisis, with supply hovering around 2.61 billion cubic feet (Bcf) per day against the demand for around 3.0 Bcf per day.
mazizur.rahman@outlook.com
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