Two IOC bids for offshore HC exploration found acceptable
FHM Humayan Kabir | Saturday, 12 July 2008
State-owned oil, gas and mineral corporation -- Petrobangla -- has found only two international oil companies (IOCs) in a bidding for offshore hydrocarbon (HC) exploration.
It is expected to submit its evaluation report to the energy ministry tomorrow (Sunday), a senior official said.
The US oil company ConocoPhilips and the Irish oil company Tullow have become qualified for exploring oil and gas in nine blocks in the Bay of Bengal under the Offshore Bidding 2008, a member of the evaluation committee said.
Five other international oil companies (IOCs) that participated in the bidding failed to qualify as they were unable to meet necessary requirements, he said.
"We've completed evaluation of the bids of the international oil companies. We may submit the evaluation report to the energy ministry Sunday," chairman of the Petrobangla Jalal Ahmed Chowdhury told the FE Friday.
He said after the approval of the government highest authority the qualified bidders will be given work order by October this year for starting exploration activities in the next dry (winter) season.
Following the soaring demand of natural gas and its prevailing crisis,
The government floated tenders on February 15 seeking proposals from the IOCs for exploring oil and gas in the Bay of Bengal.
The seven IOCs submitted tenders for 15 offshore gas blocks.
Before inviting tenders, the Petrobangla demarcated 28 prospective gas blocks in the shallow and deep water of the Bay of Bengal.
When asked about the dispute raised by Myanmar and India over the maritime boundary, Petrobangla chairman Mr Ahmed said: "The selected nine blocks excepting one are dispute-free. One of the blocks could have a little problem and that can be resolved through diplomatic channel."
Myanmar and India have recently raised disputes over some gas blocks demarcated by the Bangladesh government within its economic zone in the Bay of Bengal.
Sources in the bid evaluation committee said ConocoPhilips has been selected for exploring hydrocarbon in the blocks 10, 11, 12, 15, 16, 17, 20 and 21 in the deep-sea. Four production sharing contracts (PSCs), each for two blocks, will be signed between the company and Petrobangla.
The US oil company offered to invest $442.63 million under four PSCs for the eight offshore gas blocks.
On the other hand, Tullow has been selected for block 5 in the shallow water of the Bay. One PSC will be signed with Petrobangla to explore gas in the prospective block.
The Irish company offered $50 million investment in its block for exploring oil and gas.
Seven oil companies-US's ConocoPhilips, Australian giant Santos International, Chinese CNOOC and Longwoods Resources Ltd, Korean National Oil Corporation of South Korea, Irish Tullow Bangladesh Ltd and United Kingdom's Comtrack Services Ltd- submitted bids for 15 offshore gas blocks in the offshore bidding 2008 that closed on May 7 last.
Among the IOCs, ConocoPhilips submitted bids for the highest eight gas blocks, followed by Santos in joint ventures for six, Longwoods for three, Comtrack for two and one each by CNOOC, Korea International Oil Corporation and Tullow Bangladesh Ltd.
Energy-starved Bangladesh will require nearly $8.0 billion investment for exploring and developing oil and gas sectors to meet the growing demand up to the year 2025, energy ministry official said.
It will need about 24 trillion cubic feet (TCF) of additional gas to feed the consumers and maintain a 7.0 per cent economic growth every year.
Bangladesh, with 13.54 TCF of proven and recoverable gas reserves, is facing at least 100 million cubic feet of gas shortages a day, as the country can supply nearly 1,740 million cubic feet of gas per day (MMCFD) against the demand for more than 1,840MMCFD, the official said.
Mr Ahmed said Bangladesh would continue the bidding process and proceed to award the offshore blocks to IOCs despite recent protests from India and Myanmar as the country needs energy security.
As per model PSC, the selected companies will get nine years from the date of work orders to explore hydrocarbon at their respective offshore blocks.
It is expected to submit its evaluation report to the energy ministry tomorrow (Sunday), a senior official said.
The US oil company ConocoPhilips and the Irish oil company Tullow have become qualified for exploring oil and gas in nine blocks in the Bay of Bengal under the Offshore Bidding 2008, a member of the evaluation committee said.
Five other international oil companies (IOCs) that participated in the bidding failed to qualify as they were unable to meet necessary requirements, he said.
"We've completed evaluation of the bids of the international oil companies. We may submit the evaluation report to the energy ministry Sunday," chairman of the Petrobangla Jalal Ahmed Chowdhury told the FE Friday.
He said after the approval of the government highest authority the qualified bidders will be given work order by October this year for starting exploration activities in the next dry (winter) season.
Following the soaring demand of natural gas and its prevailing crisis,
The government floated tenders on February 15 seeking proposals from the IOCs for exploring oil and gas in the Bay of Bengal.
The seven IOCs submitted tenders for 15 offshore gas blocks.
Before inviting tenders, the Petrobangla demarcated 28 prospective gas blocks in the shallow and deep water of the Bay of Bengal.
When asked about the dispute raised by Myanmar and India over the maritime boundary, Petrobangla chairman Mr Ahmed said: "The selected nine blocks excepting one are dispute-free. One of the blocks could have a little problem and that can be resolved through diplomatic channel."
Myanmar and India have recently raised disputes over some gas blocks demarcated by the Bangladesh government within its economic zone in the Bay of Bengal.
Sources in the bid evaluation committee said ConocoPhilips has been selected for exploring hydrocarbon in the blocks 10, 11, 12, 15, 16, 17, 20 and 21 in the deep-sea. Four production sharing contracts (PSCs), each for two blocks, will be signed between the company and Petrobangla.
The US oil company offered to invest $442.63 million under four PSCs for the eight offshore gas blocks.
On the other hand, Tullow has been selected for block 5 in the shallow water of the Bay. One PSC will be signed with Petrobangla to explore gas in the prospective block.
The Irish company offered $50 million investment in its block for exploring oil and gas.
Seven oil companies-US's ConocoPhilips, Australian giant Santos International, Chinese CNOOC and Longwoods Resources Ltd, Korean National Oil Corporation of South Korea, Irish Tullow Bangladesh Ltd and United Kingdom's Comtrack Services Ltd- submitted bids for 15 offshore gas blocks in the offshore bidding 2008 that closed on May 7 last.
Among the IOCs, ConocoPhilips submitted bids for the highest eight gas blocks, followed by Santos in joint ventures for six, Longwoods for three, Comtrack for two and one each by CNOOC, Korea International Oil Corporation and Tullow Bangladesh Ltd.
Energy-starved Bangladesh will require nearly $8.0 billion investment for exploring and developing oil and gas sectors to meet the growing demand up to the year 2025, energy ministry official said.
It will need about 24 trillion cubic feet (TCF) of additional gas to feed the consumers and maintain a 7.0 per cent economic growth every year.
Bangladesh, with 13.54 TCF of proven and recoverable gas reserves, is facing at least 100 million cubic feet of gas shortages a day, as the country can supply nearly 1,740 million cubic feet of gas per day (MMCFD) against the demand for more than 1,840MMCFD, the official said.
Mr Ahmed said Bangladesh would continue the bidding process and proceed to award the offshore blocks to IOCs despite recent protests from India and Myanmar as the country needs energy security.
As per model PSC, the selected companies will get nine years from the date of work orders to explore hydrocarbon at their respective offshore blocks.