IOCs to be invited next year to explore Bay hydrocarbon

FE Report | Published: February 15, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

The government is set to invite international oil companies (IOCs) for hydrocarbon exploration in the Bay of Bengal next year, said officials.
State-run Petrobangla has already placed a proposal to the Energy and Mineral Resources Division (EMRD) under the ministry of power, energy and mineral resources to launch the new bidding round in 2016, a senior Petrobangla official said.
It has already drafted block maps and necessary documents to float the tender to exploit hydrocarbon deposits in Bangladesh's sovereign territory in the Bay, he said.
"We have planned to invite bids from the international oil companies for a total of 18 offshore blocks -- 12 in deep water and six in shallow water," said the official.
He said the area will cover around 75,000 sq km area in the Bay with the water depth ranging from 20 metres and above 2,500 metres.
Currently, Bangladesh is entirely dependent on onshore fields for natural gas output, with current production hovering around 2,470 million cubic feet per day (mmcfd) compared to demand for more than 3,000 mmcfd.
Australian oil and gas exploration company Santos was the operator of the country's lone operational offshore Sangu-11 well in the Bay of Bengal, which had been shut permanently on October 1, 2013.
A joint venture firm of Australia's Santos and Singaporean company KrisEnergy has completed 2D seismic survey in the shallow-water hydrocarbon block SS-11 in the Bay of Bengal later last month as the maiden operator in the country's maritime territory at present.
Under the planned 2016 bidding round, the bid- winning IOCs would be relieved of carrying out 2D seismic surveys. Petrobangla has already floated an international tender for carrying out 2D non-exclusive multi-client seismic surveys within the sovereign offshore areas of Bangladesh to explore offshore hydrocarbon deposits.
The proposed 2016 offshore bid winners would get data from the contractors who would be awarded the work to carry out 2D surveys.
Bangladesh earlier floated bidding rounds four times in 2012, 2008, 1993 and 1974 respectively. During all the previous rounds, the winner IOCs had to carry out 2D surveys apart from oil and gas exploration both in onshore and offshore blocks.
Director Md Quamruzzaman in charge of PSC hoped that Petrobangla would get 2D data from the bid-winning contractors when the 2016 offshore bid round would be launched.
Currently, the country's offshore areas are now well-demarcated following verdicts from international courts.
Industry insiders said there is huge potential of getting hydrocarbon in Bangladesh's maritime territory as both India and Myanmar already discovered huge gas in the Bay.
azizjst@yahoo.com