Onshore blocks to be opened up for oil, gas exploration

The government will open again the country's onshore blocks for oil and gas exploration by international oil companies, after a lull of almost two decades, state minister for the ministry of power, energy and mineral resources Nasrul Hamid told newsmen Thursday.
He said all onshore areas of the country, except those to be explored by state-owned Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), will be offered to the IOCs.
Mr Hamid, however, did not say how many blocks would be offered nor when the bidding round for the onshore blocks would be launched.
Energy secretary Abubakar Siddique and power secretary Monwar Islam attended Meet the Press at Biddut Bhaban in the city, among others.
Speaking at the function, the state minister said that Petrobangla has already been asked to map out the onshore block areas keeping ring-fenced areas for exploration by Bapex.
Mr Hamid mentioned that Bapex is now sitting idle and spelt out government plans to strengthen it. A consultant would be assigned to strengthen Bapex and to streamline its activities, he said.
State-owned Petrobangla previously had launched onshore bidding in 1997.
Mr Hamid disclosed a government plan not to provide piped natural gas to unplanned industrial zones, households and captive power plants to cope with the country's fast-depleting natural gas reserves.
He urged businessmen to set up their new industries in planned industrial zones to get piped natural gas to ensure smooth industrial output.
"We have plans to blend expensive liquefied natural gas (LNG) with local gas to have a tariff around US$4-5 per Mcf (1,000 cubic feet) as the domestic natural gas is drying up," said Mr Hamid.
He said the government has plans to increase the use of liquefied petroleum gas (LPG) in households instead of piped natural gas supplies.
"To increase the use of LPG, we have plans for its rational pricing by providing necessary subsidy. A proposal has been sent to the Prime Minister's Office (PMO) for approval," he said.
Relating to the energy sector development, he said the government had drawn up short, medium and long-term strategies to address power and energy sector problems.
Many oil fired rental and quick rental power plants were installed under the short-term planning, he said. The government is now implementing medium and long-term strategies.
"Prime Minister Sheikh Hasina will inaugurate the operation of four new power projects on May 03 through video conferencing," he said.
Another 13 power plants will come into operation next year, he added. Currently around 71 per cent people are getting electricity, he said.
There are some disruptions in power supply due to problems in transmission and distribution system.
It will take three to four years to ensure uninterrupted power supply, he hoped.
The government has also plans to develop solar power, he said, adding, several large projects having total capacity of 100 megawatts (MW) have been identified for implementation.
Regarding, coal-mining, he said the government will not go for any open pit coal mining where the cropland will be destroyed.
Responding to question on Rampal power plant, he refuted corruption charge brought by the Transparency International, Bangladesh (TIB).
Energy secretary Abu Bakar Siddique said the government will not increase gas price offered in the model production sharing contract (PSC) 2012 though the international oil companies are pressing for it.
A new model production sharing contract (PSC) is being examined by the energy division for a new round of offshore bidding planned to be invited in 2016, he added.
    mazizur.rahman@outlook.com