Petrobangla ready to set up JV with Gazprom

Petrobangla is ready to establish a joint venture (JV) firm with Russian oil major Gazprom to run hydrocarbon exploration operations at home and abroad, said officials.
The state-owned petroleum corporation sent its wish letter Tuesday to Managing Director and Chief Executive Officer (CEO) of the Gazprom EP International BV Valery Gulev, in response to a desire from the Russian side.     
Its reply letter contains coinage of comments over the planned JV between Gazprom and Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).
"We have sent the letter as the follow-up to the previous letters to carry forward the move of establishing the planned JV," Petrobangla Chairman Istiaque Ahmad told the FE Tuesday.
"It (letter) does not include detailed terms of the JV," he said.
Once the parties ink deals to form the firm, the details of the JV activities will be sorted out, Mr Ahmad added.
The letter was sent after reviewing the draft agreement on the basic principles of JV, he added.
Through this letter, Petrobangla also invited Gazprom for any further discussion in relation to finalisation of the agreement.
Sources said Gazprom is eyeing a big role in Bangladesh's hydrocarbon sector under the planned JV with the Petrobangla subsidiary, BAPEX, on a government-to-government basis.
The Russian firm had submitted a formal proposal to Petrobangla on February 26 this year in response to a July 17, 2014 initial letter from the latter wishing to establish such joint venture.
Officials said under the planned JV between Gazprom's subsidiary Gazprom EP International Investments BV and BAPEX, the Russian firm has planned to implement projects in exploration, development and production of hydrocarbons in Bangladesh and other countries.
They can do it under production-sharing contracts (PSCs), licences, service contracts or any other means.
The Gazprom is primarily interested in work like drilling in Bangladesh and spread their wings together to other countries.
Also, the planned JV activities encompass providing services on exploration, development, production, transportation, refining and
marketing of oil and gas and their by products.
The Russian firm also intends to render consultancy and design services in the oil-and-gas industry.
It also eyes implementation of oil-gas projects jointly in supply and utilisation of natural gas as motor fuel, according to the official.
Gazprom also intends to design and implement projects concerning gas-distribution systems and the networks of petrol stations. Design and construction of oil, gas and electricity facilities are two other ventures on its wish list.
The Russian firm also eyes implementation of liquefied natural gas (LNG) projects jointly.
Gazprom never took part in the recent round of bidding for oil and gas exploration in Bangladesh.
It completed a 10-well-drilling programme costing around $193.5 million (19.35 crore) in state-run gas fields owned by three gas subsidiaries of Petrobangla as a drilling contractor in November last year.
    mazizur.rahman@outlook.com