The government is going to introduce model PSC-2023 for the hills. The final draft has already been sent to the Energy and Mineral Resources Division for approval.
This draft has been prepared following Model PSC-2023, which is waiting for the prime minister's approval too.
Managing Director of BAPEX Mohammad Ali told The Daily Messenger, "This PSC has been prepared with some minor changes from the existing Model PSC."
"The existing law does not allow BAPEX, or Sylhet Gas Field Company, to make a joint venture into the block agreement with any other company. Only Petrobangla can sign the contract. In this new PSC, BAPEX can joint venture with foreign companies with the permission of Petrobangla," he said.
A BAPEX official said that there are two blocks (22 and 22/A) owned by BAPEX in the hills. BAPEX will be the partner of IOC (an international company) in oil and gas exploration here, but BAPEX will not invest. BAPEX will get a certain share of the share.
Regarding the price of gas, the official said that since there is not enough data about Chittagong Hill Tracts, it is difficult to extract oil and gas, construct roads, and install pipelines, as the project will be expensive.
Hence, the price has been slightly increased compared to the previous PSCs on land. Brent crude rates are proposed at 8 per cent.
BAPEX MD Mohammad Ali said that the draft has been sketched following the model PSC-23. After the approval of the BAPEX Board, Petrobangla has been transferred to the Energy and Mineral Resources Division. Now, with the vetting of the Law Ministry, the minister in charge of the Energy and Mineral Resources Department will be submitted for the prime minister's approval. If approved by the prime minister, we will float the tender.
Model PSC-2008 drafting committee convenor BERC and former member of BERC Moqbul-E-Elahi Chowdhury were concerned about the secrecy of the Model PSC. He said, "When we formulated PSC-2008, we held several meetings with domestic and foreign companies and energy experts. We went to Dhaka University and exchanged views. Before finalising the draft, I put it open on Petrobangla's website for feedback."
On the other hand, the government amended the Model PSC-2018 for offshore The draft model PSC-2023 has been sent to the office of Prime Minister Sheikh Hasina. The prime minister asked to give a detailed presentation, and Petrobangla is preparing to give a presentation on May 16.
The Energy and Mineral Resources Division’s officials said Model PSC-2023 will be finalised by May. Deep-sea tenders will be invited.
A Petrobangla official said on condition of anonymity that the Model PSC-2019 is being revised with many concessions, including an increase in gas prices. This initiative has been taken to attract multinational companies.
The draft does not mention fixing gas prices. Brent crude will be at the international price. The price of gas per thousand cubic feet is equal to 10 per cent of Brent crude. That is, if the price of Brent crude is $80, the price of gas will be eight dollars. Which, in the existing PSC, had a fixed rate of $5.6 and $7.25 in shallow and deep seas, respectively.
Along with the price, the share ratio of the government has also been lowered. According to PSC-2019, the proportion of Bangladesh increases with the increase in gas production. And the shares of multinational companies continue to decrease. Bangladesh's share will increase from 50 to 75 per cent in the deep sea and from 50 to 80 per cent in the shallow sea.
TDM/MI
