Country misses another year in offshore HC exploration
Sunday, 22 March 2009
When the country is experiencing a nagging energy crisis, it is going to miss another year in exploring hydrocarbon in the offshore because of the government's indecision, reports UNB.
Normally, hydrocarbon exploration is conducted in the sea during the dry season because of favourable condition of weather. The dry season ends in April.
According to official sources, the government has neither cancelled nor approved the tender proposal of the foreign oil companies, qualified under the 3rd round international gas block bidding that the state-owned Petrobangla invited in 2008 during the caretaker government.
However, the 3rd round bidding had failed to attract oil majors like Shell, Mobil or Chevron because of the government's conservative pricing of gas.
The 3rd round bidding proposed the gas price at about US$ 4.5 per 1,000 cubic feet (mcf) as against the international price of about US$ 6-9 per mcf. The present gas price is US$ 3.5 per mcf, which was set in the second round bidding in 1998.
The energy sector experts said offshore exploration involves huge investment, for which it demands a relatively higher price than the price offered for onshore gas.
In the 3rd round bidding, the government invited tender for a total of 28 blocks, but foreign companies bid only for 15 blocks, and finally offers only for nine blocks from two companies were found to be valid.
Normally, hydrocarbon exploration is conducted in the sea during the dry season because of favourable condition of weather. The dry season ends in April.
According to official sources, the government has neither cancelled nor approved the tender proposal of the foreign oil companies, qualified under the 3rd round international gas block bidding that the state-owned Petrobangla invited in 2008 during the caretaker government.
However, the 3rd round bidding had failed to attract oil majors like Shell, Mobil or Chevron because of the government's conservative pricing of gas.
The 3rd round bidding proposed the gas price at about US$ 4.5 per 1,000 cubic feet (mcf) as against the international price of about US$ 6-9 per mcf. The present gas price is US$ 3.5 per mcf, which was set in the second round bidding in 1998.
The energy sector experts said offshore exploration involves huge investment, for which it demands a relatively higher price than the price offered for onshore gas.
In the 3rd round bidding, the government invited tender for a total of 28 blocks, but foreign companies bid only for 15 blocks, and finally offers only for nine blocks from two companies were found to be valid.