BAPEX's procurement of rig gets conditional nod
Wednesday, 15 October 2008
FHM Humayan Kabir
The Planning Commission Tuesday conditionally endorsed a proposal for procurement of a drilling rig for the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), officials said.
The project evaluation committee (PEC) of the commission in a meeting in Dhaka Tuesday sought assurance from the BAPEX that it won't delay the procurement process, will buy the rig at real price to check misuse of public funds and ensure the quality of the product, an official said Tuesday.
"Now BAPEX will have to recast their proposal adding those provisions. Then it will be sent to the commission again," a planning commission official told the FE.
"On the basis of complying with our requirements, we will place the proposal before the executive committee of the national economic council (ECNEC) for getting approval," he said.
"If the government's highest body on development projects-ECNEC-approves the project, then BAPEX will be able to procure the rig from the international market," the official said.
The state-owned petroleum exploration company is going to procure the rig at a cost of about Tk 2.30 billion from a Chinese company, a BAPEX official said.
The BAPEX currently has an impoverished drilling rig, which is about 20 years old.
BAPEX conducts different exploration work in the country by leasing rigs from international oil companies at a high cost.
The company earlier invited international tenders four times but failed to procure the rig for delay or irregularities in the procurement procedure.
The BAPEX official said once the rig is procured, the country will save substantial funds.
"Besides, our hydrocarbon exploration capacity will also improve. We will also be able to rent out the rig to foreign oil companies operating here and some Tk 750 million can be earned annually," he said.
The Chinese company will supply the drilling rig within one and a half years.
The Planning Commission Tuesday conditionally endorsed a proposal for procurement of a drilling rig for the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), officials said.
The project evaluation committee (PEC) of the commission in a meeting in Dhaka Tuesday sought assurance from the BAPEX that it won't delay the procurement process, will buy the rig at real price to check misuse of public funds and ensure the quality of the product, an official said Tuesday.
"Now BAPEX will have to recast their proposal adding those provisions. Then it will be sent to the commission again," a planning commission official told the FE.
"On the basis of complying with our requirements, we will place the proposal before the executive committee of the national economic council (ECNEC) for getting approval," he said.
"If the government's highest body on development projects-ECNEC-approves the project, then BAPEX will be able to procure the rig from the international market," the official said.
The state-owned petroleum exploration company is going to procure the rig at a cost of about Tk 2.30 billion from a Chinese company, a BAPEX official said.
The BAPEX currently has an impoverished drilling rig, which is about 20 years old.
BAPEX conducts different exploration work in the country by leasing rigs from international oil companies at a high cost.
The company earlier invited international tenders four times but failed to procure the rig for delay or irregularities in the procurement procedure.
The BAPEX official said once the rig is procured, the country will save substantial funds.
"Besides, our hydrocarbon exploration capacity will also improve. We will also be able to rent out the rig to foreign oil companies operating here and some Tk 750 million can be earned annually," he said.
The Chinese company will supply the drilling rig within one and a half years.