No provision for exporting 80pc gas in PSC: JS body
Thursday, 17 September 2009
The 'national committee', a public pressure group backed by left-leaning parties, that called Monday's hartal to protest government deals with two foreign oil companies, had "confused" the public with incorrect information, a parliamentary watchdog said on Wednesday, reports bdnews24.com.
A meeting of the parliamentary standing committee on energy and mineral resources said there was no provision for exporting 80 per cent of gas extracted in the production sharing contract (PSC), as claimed by the pressure group.
Subid Ali Bhuiyan, the parliamentary committee's chairman, told reporters it would sit with leaders of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port within 15 days to discuss the issue.
The national committee called the strike on Sept 14, and set the government an Oct 15 deadline to "scrap" gas exploration deals with US company ConocoPhillips and Ireland's Tullow Oil in the Bay of Bengal.
The national committee, comprising leaders of left-leaning parties and professionals, threatened tougher agitation in future, including heightened strike action, unless their demands were met.
According to the PSC, said Bhuiyan, the oil companies have only fourth option selling rights, providing gas is found and extraction is feasible.
The two foreign companies must first offer the government, that is state-run Petrobangla, the option to buy the gas.
If the government refuses to buy, they must offer the gas for private buyers in the domestic market.
Only then, if production outruns domestic consumption, do the companies have the option to export the gas by coverting it into LNG (liquefied natural gas), said the chairman.
Bhuiyan said the government signed the deals with the international oil companies because of the immense cost of gas exploration.
He said the country's proven gas reserves were approximately 15 trillion cubic feet, of which 8.3 trillion cubic feet had already been extracted.
A meeting of the parliamentary standing committee on energy and mineral resources said there was no provision for exporting 80 per cent of gas extracted in the production sharing contract (PSC), as claimed by the pressure group.
Subid Ali Bhuiyan, the parliamentary committee's chairman, told reporters it would sit with leaders of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port within 15 days to discuss the issue.
The national committee called the strike on Sept 14, and set the government an Oct 15 deadline to "scrap" gas exploration deals with US company ConocoPhillips and Ireland's Tullow Oil in the Bay of Bengal.
The national committee, comprising leaders of left-leaning parties and professionals, threatened tougher agitation in future, including heightened strike action, unless their demands were met.
According to the PSC, said Bhuiyan, the oil companies have only fourth option selling rights, providing gas is found and extraction is feasible.
The two foreign companies must first offer the government, that is state-run Petrobangla, the option to buy the gas.
If the government refuses to buy, they must offer the gas for private buyers in the domestic market.
Only then, if production outruns domestic consumption, do the companies have the option to export the gas by coverting it into LNG (liquefied natural gas), said the chairman.
Bhuiyan said the government signed the deals with the international oil companies because of the immense cost of gas exploration.
He said the country's proven gas reserves were approximately 15 trillion cubic feet, of which 8.3 trillion cubic feet had already been extracted.