Offshore hydrocarbon exploration and jingoism
Monday, 29 September 2008
Shamsul Huq Zahid
The 'national' committee to protect oil, gas, mineral resources, power and ports, according to newspaper reports, last Friday organized a press conference to reiterate its opposition to, what it said, leasing of offshore oil blocks to international oil companies (IOCs).
The committee mentioned above is an outfit of a left-leaning political party which is ideologically opposed to multinational and international oil companies and principles of free market economy. Ironically, the socialist country that was once the source of all inspirations for the political party concerned had collapsed in the early 90s and its remnant now known as Russian Federation has embraced market economy. However, there exists yet another committee, dominated mainly by so-called experts and members of the civil society, which opposes exploration and development of country's gas and coal fields by the foreign companies.
Every citizen of the country should not have objections to genuine and logical concerns about misuse or transfer of national resources to foreign companies under uneven contracts. But what if such concerns are found to be too jingoistic and illogical? Besides, who are opposing the involvement of multinationals or IOCs in oil, gas and coal exploration should also suggest appropriate alternatives.
The national committee opposing the lease of offshore blocks to IOCs has announced an action programme that includes demonstration at Muktagan and submission of memoranda to the offices of the chief adviser and energy ministry today (Monday).
The convener of the committee while announcing the today's action programme at a press conference last Friday admitted the fact there existed a severe crisis of gas in the country and there should be move to exploit the gas ' from the sea'. But at the same time he opposed the move to give lease the offshore blocks to IOCs which were portrayed as global villains as far as exploitation of conventional energy resources of poor developing countries was concerned.
There is no denying that the some major IOCs in the past plundered oil resources of a number of countries in Asia, Africa and Latin America with the help of corrupt administrations there. But those days no more exist. It is hard for the IOCs to strike take-it-all types of agreements with energy resource rich countries in the backdrop of depleting reserve of conventional energy resources across the world.
But the question is: Can Bangladesh afford to sit idle and do nothing for the use of the coal reserve found at Barapukaria or keep the IOCs interested in drilling expensive exploratory wells in the offshore blocks in the Bay of Bengal away?
Almost every day print and electronic media carry reports on the plight of industrial units, old and new, and gas-based power stations due to gas short supply. The government is unable to allow new power plants or new gas-based industrial units. The Indian business conglomerate Tata has recently scrapped its US dollar 3.0 billion investment plan in Bangladesh after a long wait following the government's failure to give assurance about gas supply to its planned fertilizer, power and steel plants. Many big prospective foreign investors which were keenly observing developments over Tata investment plan have dropped their idea about coming to the energy-starved Bangladesh.
Concerns are mounting among conscious section of the population about the country's future if new gas reserves are not found by 2012 or 2015 when, according to experts, the proven reserve of gas would be fully exhausted.
Successive governments have failed to initiate necessary steps for inviting bids from the IOCs in time to conduct seismic and other surveys and start exploratory works in the prospective offshore blocks in the Bay of Bengal. India and Myanmar have already hit large gas reserves in their territorial waters in the Bay of Bengal. After long delays, the third round bidding for the offshore blocks has been completed recently. However, the response from the IOCs has been less than expected. The dispute over ownership of some blocks in the Bay among three neighbours-Bangladesh, India and Myanmar-might have discouraged some IOCs to take part in the bidding. But the Bangladesh officials have ruled out such a possibility saying that such disputes over offshore blocks among neighbouring countries are common events and IOCs are least bothered about it.
The bids submitted by the IOCs in the third round bidding are now under government's scrutiny and a decision in this respect is expected soon. But it would be difficult for a non-political and interim government to take a decision if some groups raise objections.
There should be no reason to question the intention of those who are raising objections to offering offshore blocks or coalfields to the international companies. They are just trying to protect national resources from 'plunder and loot'. But these people should also suggest alternatives. The country desperately needs to use gas and coal to keep its industries going and generate enough electricity.
The government does not have enough resources and expertise to engage the state-owned BAPEX in highly cost-intensive exploration work in the offshore blocks. Even resourceful countries, in many cases, do not venture in exploration work in offshore blocks and engage IOCs instead. In such a situation what should Bangladesh do? Should it stop taking initiatives for finding new gas reserves either in offshore or onshore areas and wait for the doomsday to come?
Besides, the days are, possibly, not too far away when cost-effective sources of renewable energy would be available aplenty. In such a scenario, the demand for conventional energy resources would decline dramatically. Research works are in full progress in developed countries to find out alternatives to conventional energy sources, including petroleum products.
Those who are opposed to giving offshore exploration job to the IOCs or open-pit coal extraction should shun jingoism and look at the energy issues in its true perspective. If they do, they might soften their rigid stand and advice the government to get the best possible deals for the country.
...................................
zahidfe@yahoo.com
The 'national' committee to protect oil, gas, mineral resources, power and ports, according to newspaper reports, last Friday organized a press conference to reiterate its opposition to, what it said, leasing of offshore oil blocks to international oil companies (IOCs).
The committee mentioned above is an outfit of a left-leaning political party which is ideologically opposed to multinational and international oil companies and principles of free market economy. Ironically, the socialist country that was once the source of all inspirations for the political party concerned had collapsed in the early 90s and its remnant now known as Russian Federation has embraced market economy. However, there exists yet another committee, dominated mainly by so-called experts and members of the civil society, which opposes exploration and development of country's gas and coal fields by the foreign companies.
Every citizen of the country should not have objections to genuine and logical concerns about misuse or transfer of national resources to foreign companies under uneven contracts. But what if such concerns are found to be too jingoistic and illogical? Besides, who are opposing the involvement of multinationals or IOCs in oil, gas and coal exploration should also suggest appropriate alternatives.
The national committee opposing the lease of offshore blocks to IOCs has announced an action programme that includes demonstration at Muktagan and submission of memoranda to the offices of the chief adviser and energy ministry today (Monday).
The convener of the committee while announcing the today's action programme at a press conference last Friday admitted the fact there existed a severe crisis of gas in the country and there should be move to exploit the gas ' from the sea'. But at the same time he opposed the move to give lease the offshore blocks to IOCs which were portrayed as global villains as far as exploitation of conventional energy resources of poor developing countries was concerned.
There is no denying that the some major IOCs in the past plundered oil resources of a number of countries in Asia, Africa and Latin America with the help of corrupt administrations there. But those days no more exist. It is hard for the IOCs to strike take-it-all types of agreements with energy resource rich countries in the backdrop of depleting reserve of conventional energy resources across the world.
But the question is: Can Bangladesh afford to sit idle and do nothing for the use of the coal reserve found at Barapukaria or keep the IOCs interested in drilling expensive exploratory wells in the offshore blocks in the Bay of Bengal away?
Almost every day print and electronic media carry reports on the plight of industrial units, old and new, and gas-based power stations due to gas short supply. The government is unable to allow new power plants or new gas-based industrial units. The Indian business conglomerate Tata has recently scrapped its US dollar 3.0 billion investment plan in Bangladesh after a long wait following the government's failure to give assurance about gas supply to its planned fertilizer, power and steel plants. Many big prospective foreign investors which were keenly observing developments over Tata investment plan have dropped their idea about coming to the energy-starved Bangladesh.
Concerns are mounting among conscious section of the population about the country's future if new gas reserves are not found by 2012 or 2015 when, according to experts, the proven reserve of gas would be fully exhausted.
Successive governments have failed to initiate necessary steps for inviting bids from the IOCs in time to conduct seismic and other surveys and start exploratory works in the prospective offshore blocks in the Bay of Bengal. India and Myanmar have already hit large gas reserves in their territorial waters in the Bay of Bengal. After long delays, the third round bidding for the offshore blocks has been completed recently. However, the response from the IOCs has been less than expected. The dispute over ownership of some blocks in the Bay among three neighbours-Bangladesh, India and Myanmar-might have discouraged some IOCs to take part in the bidding. But the Bangladesh officials have ruled out such a possibility saying that such disputes over offshore blocks among neighbouring countries are common events and IOCs are least bothered about it.
The bids submitted by the IOCs in the third round bidding are now under government's scrutiny and a decision in this respect is expected soon. But it would be difficult for a non-political and interim government to take a decision if some groups raise objections.
There should be no reason to question the intention of those who are raising objections to offering offshore blocks or coalfields to the international companies. They are just trying to protect national resources from 'plunder and loot'. But these people should also suggest alternatives. The country desperately needs to use gas and coal to keep its industries going and generate enough electricity.
The government does not have enough resources and expertise to engage the state-owned BAPEX in highly cost-intensive exploration work in the offshore blocks. Even resourceful countries, in many cases, do not venture in exploration work in offshore blocks and engage IOCs instead. In such a situation what should Bangladesh do? Should it stop taking initiatives for finding new gas reserves either in offshore or onshore areas and wait for the doomsday to come?
Besides, the days are, possibly, not too far away when cost-effective sources of renewable energy would be available aplenty. In such a scenario, the demand for conventional energy resources would decline dramatically. Research works are in full progress in developed countries to find out alternatives to conventional energy sources, including petroleum products.
Those who are opposed to giving offshore exploration job to the IOCs or open-pit coal extraction should shun jingoism and look at the energy issues in its true perspective. If they do, they might soften their rigid stand and advice the government to get the best possible deals for the country.
...................................
zahidfe@yahoo.com