Off-shore oil, gas and the agitations
Monday, 14 September 2009
A group of people calling themselves, the committee to save oil, gas and ports, are trying to whip up agitation against the government's move to lease out off-shore blocks to two international oil companies (IOCs). They would want to be seen as true patriots. Are they really or they are working for foreign vested interest groups who do not want our energy resource to be developed?
But, the government needs to be transparent on the issue to allay people's fears and to counter resistance to what could prove to be a sound initiative on its part. If the IOCs find oil or gas in these blocks, they would first have to offer to sell or export it to Bangladesh. The provision of mandatory export to Bangladesh is also probably there in the production sharing contract (PSC) that government has signed. This would be logical for the IOCs considering the proximity of Bangladesh to the production wells. Bangladesh would be a handy market for the fuels.
This would not be a unique deal for the country. Kafco, a foreign company, sells to Bangladesh, fertiliser it produces in Bangladesh, and it is described as a form of export.
Bangladesh has neither the resources nor the expertise to go for off-shore drilling, considered a complex and expensive activity. How then it would harm the country, if foreign companies invest their resources to find oil or gas under contracts for the host country to purchase and also to get a good amount free of costs? It makes no sense to go on boasting about off-shore energy resources which cannot be exploited for economic gains by the country's own abilities.
Faruque Hasan
K D A Avenue, Khulna
But, the government needs to be transparent on the issue to allay people's fears and to counter resistance to what could prove to be a sound initiative on its part. If the IOCs find oil or gas in these blocks, they would first have to offer to sell or export it to Bangladesh. The provision of mandatory export to Bangladesh is also probably there in the production sharing contract (PSC) that government has signed. This would be logical for the IOCs considering the proximity of Bangladesh to the production wells. Bangladesh would be a handy market for the fuels.
This would not be a unique deal for the country. Kafco, a foreign company, sells to Bangladesh, fertiliser it produces in Bangladesh, and it is described as a form of export.
Bangladesh has neither the resources nor the expertise to go for off-shore drilling, considered a complex and expensive activity. How then it would harm the country, if foreign companies invest their resources to find oil or gas under contracts for the host country to purchase and also to get a good amount free of costs? It makes no sense to go on boasting about off-shore energy resources which cannot be exploited for economic gains by the country's own abilities.
Faruque Hasan
K D A Avenue, Khulna