BAPEX invites foreign firms for tie-up
Tuesday, 14 December 2010
M Azizur Rahman
The government has sought proposals from state owned foreign firms to develop and produce natural gas from four potential onshore gas structures dotted across the country's southeastern hilly region, officials said Monday.
State-owned oil and gas exploration company-- Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) -- has invited international energy firms to place their proposals for the joint venture.
"We've already sent five letters to a number of firms and requested their early responses," a senior BAPEX official said.
Malaysia's state-owned Petronas, India's Oil and Natural Gas Corporation (ONGC), Chinese CNPC, Russian Gazprom, Thai PTTEP are among the firms that already got BAPEX's invitation, he said.
Invitation would also be sent to different state-owned oil and gas firms including those of Japan, Korean, and Kuwait shortly, BAPEX officials said.
The move came against the backdrop of acute gas crisis the country is now facing and capacity constraints and busy schedule of BAPEX.
The terms and conditions, required investments and stakes would be finalised on the basis of negotiation with the cornered companies.
All the four gas structures on offer - Kotia, Joldi, Kafalong, Shitapara -- are located under the country's hydrocarbon block -22 delineated area covering 13,900 sq km.
The gas block was originally awarded to US-based firm United Meridian Corporation (UMC) in February 1997 after the country's first round of international bidding for oil and gas exploration.
Another US firm the Houston-based Ocean Energy had won the rights to explore gas in block 22, considered rich in energy after it took over UMC.
But the company was stripped of the rights for exploration after failing to drill wells within seven years of its contract period.
The government took over the block from the Ocean Energy in 2006.
The government has sought proposals from state owned foreign firms to develop and produce natural gas from four potential onshore gas structures dotted across the country's southeastern hilly region, officials said Monday.
State-owned oil and gas exploration company-- Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) -- has invited international energy firms to place their proposals for the joint venture.
"We've already sent five letters to a number of firms and requested their early responses," a senior BAPEX official said.
Malaysia's state-owned Petronas, India's Oil and Natural Gas Corporation (ONGC), Chinese CNPC, Russian Gazprom, Thai PTTEP are among the firms that already got BAPEX's invitation, he said.
Invitation would also be sent to different state-owned oil and gas firms including those of Japan, Korean, and Kuwait shortly, BAPEX officials said.
The move came against the backdrop of acute gas crisis the country is now facing and capacity constraints and busy schedule of BAPEX.
The terms and conditions, required investments and stakes would be finalised on the basis of negotiation with the cornered companies.
All the four gas structures on offer - Kotia, Joldi, Kafalong, Shitapara -- are located under the country's hydrocarbon block -22 delineated area covering 13,900 sq km.
The gas block was originally awarded to US-based firm United Meridian Corporation (UMC) in February 1997 after the country's first round of international bidding for oil and gas exploration.
Another US firm the Houston-based Ocean Energy had won the rights to explore gas in block 22, considered rich in energy after it took over UMC.
But the company was stripped of the rights for exploration after failing to drill wells within seven years of its contract period.
The government took over the block from the Ocean Energy in 2006.