Encroachment on offshore blocks blamed on Dhaka's go-slow policy
Monday, 17 November 2008
M Azizur Rahman
The delay in launching offshore bidding and subsequently awarding the prospective oil and gas blocks for exploration has prompted the neighbours to encroach on the country's sea territory over the past several years, said officials.
Bangladesh had initiated the process to launch bidding for hydrocarbon exploration after dividing the country's entire sea territory into different blocks in early 2005 around four years ago when neighbouring Myanmar and India were approaching the offshore bidding rounds.
Bangladesh, however, launched the much-expected offshore bidding in February this year with India and Myanmar already completing their bidding rounds and also awarding the potential blocks in the Bay to different oil and gas companies.
But objections from neighbours and subsequent lukewarm response from foreign oil and gas companies dimmed Bangladesh's prospect as bids were submitted against only 15 blocks out of the total 28 on offer.
Though the energy ministry recently selected two oil and gas companies for awarding nine blocks, no agreement in this connection could yet be signed as the incumbent government virtually shelved it, a senior energy ministry official alleged.
During the period, neighbouring India launched bidding for oil and gas explorations twice -- first in February 2006 and second in December 2007 - and subsequently awarded a total of 100 oil and gas blocks for exploration.
Some of the Indian blocks in the Bay of Bengal are now overlapping Bangladesh's sea territory, energy ministry sources said.
"To the west, part of the block SS-08-05 was licensed by India (as block NEC-DWN-2004/2) to Australian Santos in 2007," a UK firm's survey in the Bay revealed, substantiating the energy ministry's apprehension.
"The Indian block overlaps Bangladeshi offshore blocks SS-08-09 and SS-08-14 and further south, another Santos block, NEC-DWN-2004/1, overlaps Bangladeshi blocks DS-08-14, DS-08-19 and DS-08-24," the firm noted.
Another neighbour Myanmar also launched offshore bidding during the period.
The Myanmar authority awarded around 25 blocks to the oil and gas companies for exploration in the Bay overlapping seven Bangladesh blocks, the survey pointed out.
Of the Myanmar blocks, the AD-7 overlapped part of Bangladesh's deep-water block DS-08-13 while the AD-8 overlapped Bangladesh's deep-sea offshore blocks DS-08-18 and part of DS-08-17 and DS-08-13. The AD-9 overlaps the offshore gas blocks DS-08-22, DS-08-23, DS-08-27 and DS-08-28, the survey conducted in the Bay revealed.
Chief Adviser's special assistant on energy issues Prof M Tamim also admitted that the delay in launching offshore bidding wooed the neighbours to encroach on Bangladesh's sea territory.
"The government could launch the bidding during its very first attempt," he said.
Prof M Tamim also accused a section of intellectuals who were opposing the government's move to award the offshore blocks.
"The group in the name of oil and gas protection committee not only created obstacles but also campaigned negatively in this regard," he added.
The delay in launching offshore bidding and subsequently awarding the prospective oil and gas blocks for exploration has prompted the neighbours to encroach on the country's sea territory over the past several years, said officials.
Bangladesh had initiated the process to launch bidding for hydrocarbon exploration after dividing the country's entire sea territory into different blocks in early 2005 around four years ago when neighbouring Myanmar and India were approaching the offshore bidding rounds.
Bangladesh, however, launched the much-expected offshore bidding in February this year with India and Myanmar already completing their bidding rounds and also awarding the potential blocks in the Bay to different oil and gas companies.
But objections from neighbours and subsequent lukewarm response from foreign oil and gas companies dimmed Bangladesh's prospect as bids were submitted against only 15 blocks out of the total 28 on offer.
Though the energy ministry recently selected two oil and gas companies for awarding nine blocks, no agreement in this connection could yet be signed as the incumbent government virtually shelved it, a senior energy ministry official alleged.
During the period, neighbouring India launched bidding for oil and gas explorations twice -- first in February 2006 and second in December 2007 - and subsequently awarded a total of 100 oil and gas blocks for exploration.
Some of the Indian blocks in the Bay of Bengal are now overlapping Bangladesh's sea territory, energy ministry sources said.
"To the west, part of the block SS-08-05 was licensed by India (as block NEC-DWN-2004/2) to Australian Santos in 2007," a UK firm's survey in the Bay revealed, substantiating the energy ministry's apprehension.
"The Indian block overlaps Bangladeshi offshore blocks SS-08-09 and SS-08-14 and further south, another Santos block, NEC-DWN-2004/1, overlaps Bangladeshi blocks DS-08-14, DS-08-19 and DS-08-24," the firm noted.
Another neighbour Myanmar also launched offshore bidding during the period.
The Myanmar authority awarded around 25 blocks to the oil and gas companies for exploration in the Bay overlapping seven Bangladesh blocks, the survey pointed out.
Of the Myanmar blocks, the AD-7 overlapped part of Bangladesh's deep-water block DS-08-13 while the AD-8 overlapped Bangladesh's deep-sea offshore blocks DS-08-18 and part of DS-08-17 and DS-08-13. The AD-9 overlaps the offshore gas blocks DS-08-22, DS-08-23, DS-08-27 and DS-08-28, the survey conducted in the Bay revealed.
Chief Adviser's special assistant on energy issues Prof M Tamim also admitted that the delay in launching offshore bidding wooed the neighbours to encroach on Bangladesh's sea territory.
"The government could launch the bidding during its very first attempt," he said.
Prof M Tamim also accused a section of intellectuals who were opposing the government's move to award the offshore blocks.
"The group in the name of oil and gas protection committee not only created obstacles but also campaigned negatively in this regard," he added.