The idea of gas export is reckless
Tuesday, 8 September 2009
N.M. Harun
There is a scramble for oil and gas all over the world. Powerful countries invade weaker countries and countries get embroiled in civil wars over the possession of or access to oil and gas. Governments in countries after countries commit all sorts of crime to serve the interests of oil and gas companies. The people suffer but also wage movements, with varying degrees of success and failures, against this government-business nexus on oil and gas. Africa, the Middle East and Central Asia are the worst battlegrounds of the global energy war.
Bangladesh is also a theatre of this global energy war for about three decades now. What happened at Bijoynagar in the city on Tuesday (September 2) is an ugly demonstration of the government-oil business nexus and a remarkable example of the just struggle in defence of the right of the people to the national property. The event was both local and global.
Baring the fangs: The so-called caretaker government approved in 2008 a model production sharing contract (PSC), keeping provisions for export of gas. The National Committee to Protect Oil, Gas, Mineral Resources, Power and Port (NCPOGMPP) has since been demanding the scrapping of the model PSC. But the present government acted on that model PSC and announced on August 24 the decision to award three offshore blocks to two foreign companies - Ireland-based Tallow Bangladesh and the American Conoco Phillips South Asia New Ventures Ltd. The NCPOGMPP immediately protested and demanded scrapping of the model PSC of 2008, formulation of a new PSC which will protect national interest, rescinding of the August 24 decision to award the three offshore blocks to the two companies, calling fresh tenders and awarding oil and gas blocks in an open and transparent manner.
The NCPOGMPP announced a programme to press its demands. In accordance with that programme, it held a short rally at Muktangan on September 2 and proceeded towards Kawran Bazar to lay siege to Petrobangla head office and submit a memorandum to the Petrobangla authorities. The procession progressed a few metres and the police started harassing it. Soon the police put up strong barricades at Bijoynagar -- several hundred metres north of Muktangan and several miles south of the Petrobangla head office. The marchers prepared to stage a brief sit-in demonstration and disperse after announcing their fresh programmes. The police apparently went berserk and mercilessly beat up the marchers. Several dozens were injured and among them was Professor Anu Muhammad, the member-secretary of the NCPOGMPP. Both the legs of the professor were fractured. The NCPOGMPP has announced a fresh staggered programme up to September 10, protesting against the police action and demanding realisation of its demands. On September 10 is scheduled to be held a rally at Muktangan and a procession to proceed towards the Prime Minister's office.
Damage-management: The government seems to have realised that the police action was a scandal. Ministers, advisers to the Prime Minister and the leaders of the ruling Awami League visited Prof. Anu Muhammad at the hospital. The home ministry in a statement described the incident "unexpected and sad" and asked the IGP to institute an inquiry into the matter. The parliamentary standing committee on home ministry also described the incident as "unwarranted", upbraided the police authorities and asked them to ensure that such incidents would not recur in the future.
For all the sympathetic gestures that the government and the government leaders are now showing to Prof Anu Muhammad, the fact remains the procession of the NCPOGMPP was brutally attacked. The government has done afterwards quite a lot in the way of damage-management. This may be smart politics. But the substantive issues concerning the model PSC of 2008 and the decision to award three offshore blocks to foreign companies on the basis of that PSC remain yet to be addressed.
Then and now: More disturbing is the obvious contradiction between Prime Minister Sheikh Hasina's earlier public stance of opposing export of gas and her government's present policy and action in favour of export of gas.
l Visiting US President Bill Clinton and Prime Minister Sheikh Hasina addressed a joint press conference at the Prime Minister's office on March 20, 2000. Hasina stated: "On the question of export of gas, our position remains that after fully meeting our domestic requirements, and ensuring gas for 50 years for use of future generations, the remaining surplus gas will be available for export."
-- Transcript of Clinton-Hasina joint press statement, as distributed by the Office of International Information Programs, U.S. Department of State
l Hasina, then leader of the opposition in the parliament, addressed a gathering of lawyers in Dhaka on October 27, 2001. The special correspondent of the Hindu reported from Dhaka: "The former Prime Minister of Bangladesh, Sheikh Hasina, has strongly opposed the new Government's [Khaleda Zia-led BNP-Jamaat government] move to export natural gas to India 'without meeting the domestic needs and ensuring sufficient reserve' for the country.
"Ms. Hasina alleged that the Awami League was 'forced to suffer defeat under a blueprint' to deprive the people of their natural resources 'through a treacherous sell-out'. 'Everybody is now after gas, may be that is the reason for our defeat, but we cannot compromise with our national interest,' she told a huge gathering of lawyers here on Saturday [October 27 2001]."
-- The Hindu/India, October 29, 2009
l The ruling Bangladesh Awami League held a discussion meeting in observance of the 60th founding anniversary of the party at the Bangabandhu International Conference Centre on June 24, 2009. Speaking at the meeting, Prime Minister Hasina "emphatically said that Awami League does not do politics compromising on interests of the country, which was proved in 2001 when Awami League was defeated through 'conspiracy' in the then parliamentary elections only because it opposed selling off gas.
'We were defeated through conspiracy as we did not want to sell out country's gas,' she told the meet.
"Referring to a meeting in 2001 in Jamuna, the then official residence of the then caretaker government chief, Justice Latifur Rahman, where former US president Jimmy Carter, Sheikh Hasina and BNP chairperson Khaleda Zia were present, the PM said the matter of gas export also had come up for discussion.
"'I had told them that people are the owner of the country's gas and other resources. It is the people who would decide over the selling of gas. I could not sell gas without fulfilling demand of the country' s people,' she said."
-- The United News of Bangladesh (UNB)
Hasina in her utterances was obviously very courageous. She stood up to the world powers to protect and preserve the gas resources of the country. What has happened between then and now?
The fundamental issue: Whatever the government may argue in support of the model PSC of 2008, the fundamental issue is: it is reckless even to contemplate export of gas. The country does not have, according to experts, enough proven reserve of gas to meet domestic requirement beyond 2015.
Besides, the experts have pointed out that the proposed agreements with Tallow and Conoco will be totally disadvantageous for Bangladesh. First, there is no mention about constructing gas pipeline to bring the gas from the sea to the land. Bangladesh does not have the resources to undertake this costly project. That means, the foreign companies may virtually get possession of the entire amount of gas discovered and recovered -- and the scope to export the whole amount as LNG. Secondly, the price of gas offered is ludicrously low. Third, there is no provision for transfer of technology.
The NCPOGMPP has been campaigning to protect gas from the greed of the unscrupulous governments at home and the rapacious oil companies and energy-hungry countries abroad. The September 2 "unwarranted" police action is a wake up call for the government and Prime Minister Hasina in particular to decide whether they will side with the people or will compromise with the oil companies and foreign interests.
harun1943@gmail.com
There is a scramble for oil and gas all over the world. Powerful countries invade weaker countries and countries get embroiled in civil wars over the possession of or access to oil and gas. Governments in countries after countries commit all sorts of crime to serve the interests of oil and gas companies. The people suffer but also wage movements, with varying degrees of success and failures, against this government-business nexus on oil and gas. Africa, the Middle East and Central Asia are the worst battlegrounds of the global energy war.
Bangladesh is also a theatre of this global energy war for about three decades now. What happened at Bijoynagar in the city on Tuesday (September 2) is an ugly demonstration of the government-oil business nexus and a remarkable example of the just struggle in defence of the right of the people to the national property. The event was both local and global.
Baring the fangs: The so-called caretaker government approved in 2008 a model production sharing contract (PSC), keeping provisions for export of gas. The National Committee to Protect Oil, Gas, Mineral Resources, Power and Port (NCPOGMPP) has since been demanding the scrapping of the model PSC. But the present government acted on that model PSC and announced on August 24 the decision to award three offshore blocks to two foreign companies - Ireland-based Tallow Bangladesh and the American Conoco Phillips South Asia New Ventures Ltd. The NCPOGMPP immediately protested and demanded scrapping of the model PSC of 2008, formulation of a new PSC which will protect national interest, rescinding of the August 24 decision to award the three offshore blocks to the two companies, calling fresh tenders and awarding oil and gas blocks in an open and transparent manner.
The NCPOGMPP announced a programme to press its demands. In accordance with that programme, it held a short rally at Muktangan on September 2 and proceeded towards Kawran Bazar to lay siege to Petrobangla head office and submit a memorandum to the Petrobangla authorities. The procession progressed a few metres and the police started harassing it. Soon the police put up strong barricades at Bijoynagar -- several hundred metres north of Muktangan and several miles south of the Petrobangla head office. The marchers prepared to stage a brief sit-in demonstration and disperse after announcing their fresh programmes. The police apparently went berserk and mercilessly beat up the marchers. Several dozens were injured and among them was Professor Anu Muhammad, the member-secretary of the NCPOGMPP. Both the legs of the professor were fractured. The NCPOGMPP has announced a fresh staggered programme up to September 10, protesting against the police action and demanding realisation of its demands. On September 10 is scheduled to be held a rally at Muktangan and a procession to proceed towards the Prime Minister's office.
Damage-management: The government seems to have realised that the police action was a scandal. Ministers, advisers to the Prime Minister and the leaders of the ruling Awami League visited Prof. Anu Muhammad at the hospital. The home ministry in a statement described the incident "unexpected and sad" and asked the IGP to institute an inquiry into the matter. The parliamentary standing committee on home ministry also described the incident as "unwarranted", upbraided the police authorities and asked them to ensure that such incidents would not recur in the future.
For all the sympathetic gestures that the government and the government leaders are now showing to Prof Anu Muhammad, the fact remains the procession of the NCPOGMPP was brutally attacked. The government has done afterwards quite a lot in the way of damage-management. This may be smart politics. But the substantive issues concerning the model PSC of 2008 and the decision to award three offshore blocks to foreign companies on the basis of that PSC remain yet to be addressed.
Then and now: More disturbing is the obvious contradiction between Prime Minister Sheikh Hasina's earlier public stance of opposing export of gas and her government's present policy and action in favour of export of gas.
l Visiting US President Bill Clinton and Prime Minister Sheikh Hasina addressed a joint press conference at the Prime Minister's office on March 20, 2000. Hasina stated: "On the question of export of gas, our position remains that after fully meeting our domestic requirements, and ensuring gas for 50 years for use of future generations, the remaining surplus gas will be available for export."
-- Transcript of Clinton-Hasina joint press statement, as distributed by the Office of International Information Programs, U.S. Department of State
l Hasina, then leader of the opposition in the parliament, addressed a gathering of lawyers in Dhaka on October 27, 2001. The special correspondent of the Hindu reported from Dhaka: "The former Prime Minister of Bangladesh, Sheikh Hasina, has strongly opposed the new Government's [Khaleda Zia-led BNP-Jamaat government] move to export natural gas to India 'without meeting the domestic needs and ensuring sufficient reserve' for the country.
"Ms. Hasina alleged that the Awami League was 'forced to suffer defeat under a blueprint' to deprive the people of their natural resources 'through a treacherous sell-out'. 'Everybody is now after gas, may be that is the reason for our defeat, but we cannot compromise with our national interest,' she told a huge gathering of lawyers here on Saturday [October 27 2001]."
-- The Hindu/India, October 29, 2009
l The ruling Bangladesh Awami League held a discussion meeting in observance of the 60th founding anniversary of the party at the Bangabandhu International Conference Centre on June 24, 2009. Speaking at the meeting, Prime Minister Hasina "emphatically said that Awami League does not do politics compromising on interests of the country, which was proved in 2001 when Awami League was defeated through 'conspiracy' in the then parliamentary elections only because it opposed selling off gas.
'We were defeated through conspiracy as we did not want to sell out country's gas,' she told the meet.
"Referring to a meeting in 2001 in Jamuna, the then official residence of the then caretaker government chief, Justice Latifur Rahman, where former US president Jimmy Carter, Sheikh Hasina and BNP chairperson Khaleda Zia were present, the PM said the matter of gas export also had come up for discussion.
"'I had told them that people are the owner of the country's gas and other resources. It is the people who would decide over the selling of gas. I could not sell gas without fulfilling demand of the country' s people,' she said."
-- The United News of Bangladesh (UNB)
Hasina in her utterances was obviously very courageous. She stood up to the world powers to protect and preserve the gas resources of the country. What has happened between then and now?
The fundamental issue: Whatever the government may argue in support of the model PSC of 2008, the fundamental issue is: it is reckless even to contemplate export of gas. The country does not have, according to experts, enough proven reserve of gas to meet domestic requirement beyond 2015.
Besides, the experts have pointed out that the proposed agreements with Tallow and Conoco will be totally disadvantageous for Bangladesh. First, there is no mention about constructing gas pipeline to bring the gas from the sea to the land. Bangladesh does not have the resources to undertake this costly project. That means, the foreign companies may virtually get possession of the entire amount of gas discovered and recovered -- and the scope to export the whole amount as LNG. Secondly, the price of gas offered is ludicrously low. Third, there is no provision for transfer of technology.
The NCPOGMPP has been campaigning to protect gas from the greed of the unscrupulous governments at home and the rapacious oil companies and energy-hungry countries abroad. The September 2 "unwarranted" police action is a wake up call for the government and Prime Minister Hasina in particular to decide whether they will side with the people or will compromise with the oil companies and foreign interests.
harun1943@gmail.com