Govt warned against gas exploration deal signing
Saturday, 19 September 2009
The National Committee on Protection of Oil, Gas, Mineral Resources, Power and Ports, a public pressure group backed by left-leaning parties, has asked for a halt to all initiatives to sign contracts with foreign companies on offshore gas exploration, reports bdnews24.com.
Convener of the committee Sheikh Mohammad Shahidullah and member-secretary Anu Muhammad made the demand in a joint statement Friday.
"The parliamentary committee (on energy and mineral resources) is proposing discussion on one hand and on the other, Petrobangla is trying to get the contract done during Eid holidays," they said in a statement.
"We disapprove of the duplicity of the government."
They urged the government to make a new production-sharing contract (PSC) and start gas exploration through discussion by upholding the national interest.
The nation will not accept any 'unethical attempt' to hand the gas of the country to foreign companies depriving them of precious natural resource, the statement said.
It said the export of all of the gas will become indispensable because there is no compulsion in the model PSC on transporting gas from the well to the ground and because Bangladesh does not have the financial and technical capability to sell gas abroad. The confusion can be dispersed if there is an open discussion.
The citizen's group enforced a half-day hartal in capital Dhaka, the first in nearly three years, on September 14 in protest against the deals and gave the government until October 15 to meet their five-point charter of demands.
The pressure group, comprising leaders of left-leaning parties and professionals, threatened tougher agitation in future, including heightened strike action, unless their demand was met.
The charter of demands includes the cancellation of the model oil-gas distribution agreements, cancellation of leases given to two foreign firms for three offshore blocks, formulation of new model PSC ensuring 100 per cent public ownership, full implementation of Phulbari Agreement 2006 and punishment to the attackers of Anu Muhammad and others.
Bangladesh approved the offshore deals with ConocoPhillips and Tullow on August 24 for oil and gas exploration in three sea blocks of the resource-rich Bay, although the deals stipulated that they would not be permitted to operate in any disputed waters of the blocks.
The standing committee said last Wednesday the pressure group had "confused" the public with incorrect information and pointed out there was no provision for exporting 80 per cent of gas extracted in the PSC, as claimed by the group.
Tullow is one of the largest oil and gas exploration companies in Europe, while ConocoPhillips is the third largest company of this kind in the USA.
The country's proven gas reserves are approximately 15 trillion cubic feet, of which 8.3 trillion cubic feet have been extracted, according to government estimates.
Convener of the committee Sheikh Mohammad Shahidullah and member-secretary Anu Muhammad made the demand in a joint statement Friday.
"The parliamentary committee (on energy and mineral resources) is proposing discussion on one hand and on the other, Petrobangla is trying to get the contract done during Eid holidays," they said in a statement.
"We disapprove of the duplicity of the government."
They urged the government to make a new production-sharing contract (PSC) and start gas exploration through discussion by upholding the national interest.
The nation will not accept any 'unethical attempt' to hand the gas of the country to foreign companies depriving them of precious natural resource, the statement said.
It said the export of all of the gas will become indispensable because there is no compulsion in the model PSC on transporting gas from the well to the ground and because Bangladesh does not have the financial and technical capability to sell gas abroad. The confusion can be dispersed if there is an open discussion.
The citizen's group enforced a half-day hartal in capital Dhaka, the first in nearly three years, on September 14 in protest against the deals and gave the government until October 15 to meet their five-point charter of demands.
The pressure group, comprising leaders of left-leaning parties and professionals, threatened tougher agitation in future, including heightened strike action, unless their demand was met.
The charter of demands includes the cancellation of the model oil-gas distribution agreements, cancellation of leases given to two foreign firms for three offshore blocks, formulation of new model PSC ensuring 100 per cent public ownership, full implementation of Phulbari Agreement 2006 and punishment to the attackers of Anu Muhammad and others.
Bangladesh approved the offshore deals with ConocoPhillips and Tullow on August 24 for oil and gas exploration in three sea blocks of the resource-rich Bay, although the deals stipulated that they would not be permitted to operate in any disputed waters of the blocks.
The standing committee said last Wednesday the pressure group had "confused" the public with incorrect information and pointed out there was no provision for exporting 80 per cent of gas extracted in the PSC, as claimed by the group.
Tullow is one of the largest oil and gas exploration companies in Europe, while ConocoPhillips is the third largest company of this kind in the USA.
The country's proven gas reserves are approximately 15 trillion cubic feet, of which 8.3 trillion cubic feet have been extracted, according to government estimates.