ONGC is the first Indian company to get exploration contracts in Bangladesh.
The
two agreements were signed between the Bangladesh Government,
Petrobangla and ONGC; and Oil India and state-owned Bangladesh Petroleum
Exploration and Production Company Ltd (Bapex) at capital Dhaka’s
Petrocenter on Monday.
Finance Minister AMA Muhith, Power, Energy
and Mineral Resources Affairs Advisor to the Prime Minister
Taufiq-e-Elahi Chowdhury, State Minister for Power, Energy and Mineral
Resources Nasrul Hamid Bipu and Indian High Commissioner in Dhaka Pankaj
Saran were present at the signing ceremony.
The Petrobangla
invited bids last year under the model Production Sharing Contract (PSC)
2012 for hydrocarbon exploration in two shallow water blocks - SS-04
and SS-09 in the Bay of Bengal.
Petrobangla officials said that
two more agreements would be signed this month with the US-based oil and
gas company ConocoPhillips for the shallow-water Block 7 and
Santos-Criss Energy for Block 11.
After formulating the PSC-2012 in September 2012, the
state-run energy corporation, Petrobangla, invited an international bidding for
10 to 12 gas-blocks in the shallow and deep-sea areas, except the ones caught up
in a dispute with India.
Of the blocks, tenders were invited twice for
the shallow-water blocks from SS-02 to SS-04; and from block SS-06 to SS-11.
Despite the efforts, only three companies submitted responded.
The
Petrobangla suspended its international tender for three deep-sea blocks in
February last year, as no international bidder had shown interest. The three
deep-sea blocks are DS-12, DS-16 and DS-21, sized between 3,200 and 3,500 sq km,
at depths of 200 metres to 2,000 metres.
Later, the PSC was revised to
ease some of the conditions in response to demands by contractors.
The
government is now evaluating the bids it has got for the three deep-sea gas
blocks. ConocoPhillips happens to be the only bidder for all three of
them.
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