Photo : Collected
After a decade of maritime dispute with Myanmar, the government seriously wants to pursue gas and oil extraction by maintaining proper procedures instead of relying on the much-criticised special act titled ‘Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010’.
Additionally, to attract international energy giants, the government has amended the Production Sharing Contract (PSC), leading to a hike in gas prices.
Industry insiders believe that this alluring offer will pique the interest of global giants in working in the deep sea. At one point, the government had decided in principle to award deep sea exploration rights to the USA-based energy giant ExxonMobil.
Recently, the government declared that Petrobangla will float tenders in the international market to provide an opportunity for energy giants to participate, ensuring market competitiveness.
However, before the national election, the US-based ExxonMobil sent a proposal to the energy ministry to conduct exploration work at sea.
The US company sent this letter to the Power and Energy Division on July 16, 2023, and ExxonMobil officials met with concerned officials in the presence of the state minister for Power, Energy, and Mineral Resources, Nasrul Hamid, to discuss the issue.
Furthermore, Chevron has purchased sea data, as the company is keen to engage in exploration work. The state minister told The Daily Messenger, “Yes, the US-based gas exploration company, currently operating in Bangladesh’s gas field Bibiana and supplying 60 percent of the gas to the national grid, has acquired sea data and other information.”
He also said, “We will follow the proper procedure. I hope both US-based companies, Chevron and Exxon, will participate with competitive pricing.”
Professor Shamsul Alam, energy advisor to the Consumers Association of Bangladesh and a prominent energy expert in the country, told The Daily Messenger, “Of course, it is good news that the government is going to follow conventional tendering procedures, but we cannot be confident they will adhere to the decision as the special act still exists. If the government has goodwill, they have to abolish the act quickly.”
Md Abu Saqlayen, general manager of Development and Production at Petrobangla, said, “This is a highly confidential issue. I cannot comment on the matter. The concerned official will provide information.”
In the letter, the US company expressed their desire to conduct two-dimensional (2D) and three-dimensional (3D) surveys in search of oil and gas in the deep sea of Bangladesh and expressed interest in signing a memorandum of understanding (MOU) by last August, though that has been postponed.
The US multinational company ExxonMobil has offered to invest $30 billion (three thousand crore) in the exploration and extraction of oil and gas in the deep sea of Bangladesh. ExxonMobil’s Opportunity Manager, Jonathan Wilson, has written to the Minister of State for Power, Energy, and Mineral Resources expressing interest.
Additionally, ExxonMobil stated in the letter that the company estimates to invest $100 billion if the seismic survey indicates the possibility of viable gas and oil reserves.
Meanwhile, the government has taken a decision in principle to award Block-8 and Block-11 to the US-based gas exploration company Chevron and Russian state-owned Gazprom for drilling operations in Shahabazpur-5, 7, and Bhola Island.
Industry insiders believe that these projects may ease the primary fuel crisis as fuel prices rise in the world market due to inflation. However, the jobs should be awarded through an open bidding procedure instead of a Special Act to ensure transparency and competitiveness.
State Minister Nasrul Hamid told The Daily Messenger, “The formula of the agreement has yet to be finalised. Chevron has been asked to submit a foolproof proposal on the project, which will be finalised later.”
Chevron supplies gas and condensate to the country from Bibiana, Jalalabad, and Moulvibazar gas fields under Production Sharing Agreement (PSC), Gas Purchase Sale Agreement (GPSA), and Condensate Purchase Sale Agreement (CPSA).
About 1300 million cubic feet of gas are being supplied to the national gas grid daily from Bibiana, Jalalabad, and Moulvibazar gas fields operated by Chevron, which accounts for more than 55 percent of the total gas production in the country.
Messenger/Fameema
