Photo: Messenger
Despite the introduction of improved facilities and a revised Production Sharing Contract (PSC) designed to attract global investment, interest from major international oil and gas companies in exploring Bangladesh's gas resources remains subdued. However, there has been a notable uptick in interest over the past year, driven by the potential of multi-dimensional sea surveys.
The Power, Energy, and Mineral Resources Division invited 55 companies to participate in a recent tender. Nevertheless, only six companies have purchased the tender documents, with the submission deadline set for September 9. In response to a decade-long maritime dispute with Myanmar and the repeal of the criticized ‘Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010,’ the government is now committed to adhering to proper procedures for gas and oil extraction. This shift has raised questions about whether the tender will be reissued.
Janendra Nath Sarkar, Chairman of Petrobangla, informed the Daily Messenger that the Energy Division has approved a three-month extension for the tender period. A new notification will be issued with the consent of the Advisor on Power, Energy, and Mineral Resources.
International companies like Chevron, ExxonMobil, and Gazprom have expressed interest by acquiring data on the sea, indicating their potential engagement in exploration activities. Chevron, which is already active in Bangladesh’s Bibiana gas field, has shown strong interest and purchased sea data. An official from Petrobangla stated, "We will adhere to proper procedures and anticipate competitive bids from US-based companies Chevron and ExxonMobil."
ExxonMobil, currently engaged in Bangladesh, had initially planned to sign a memorandum of understanding (MOU) by August 2023 for conducting 2D and 3D seismic surveys, but this has been postponed. The company has proposed an investment of $30 billion for exploration and extraction, with a potential total investment of $100 billion contingent upon promising seismic survey results. Jonathan Wilson, ExxonMobil’s Opportunity Manager, communicated this interest to the Minister of State for Power, Energy, and Mineral Resources.
The government had previously planned to award Blocks 8 and 11 to Chevron and Gazprom for drilling projects in Shahabazpur-5, 7, and Bhola Island. Industry insiders believe these projects could address the primary fuel crisis exacerbated by rising global fuel prices. They advocate for an open bidding process to ensure transparency and competitiveness, rather than relying on a special legislative act.
The agreement formula for these projects is still under negotiation. Chevron has been requested to submit a detailed proposal for review. Under its current agreements (PSC, GPSA, CPSA), Chevron supplies approximately 1,300 million cubic feet of gas daily to the national grid from its Bibiana, Jalalabad, and Moulvibazar fields, contributing over 55 percent of the country’s total gas production.
Messenger/Disha
