The government’s soft for oil and gas exploration in the Bay of Bengal has failed to plan any bidders in 9 months, no matter preliminary hobby from several world companies.
Seven companies had purchased the soft paperwork, nonetheless none submitted proposals through the lower-off date which ended this afternoon, in line with Vitality Division and Petrobangla sources.
The Business Fashioned contacted Vitality and Mineral Resources Division Secretary Mohammad Saiful Islam today for feedback on the matter, and he acknowledged, “Right here’s no longer habitual and is piece of the activity.”
“Just because we invite tenders doesn’t imply companies will directly respond. Or no longer it’s far a prolonged activity. We are able to preserve further discussions to handle what world companies question, what are the problems, and the place now we bear to back,” he elaborated.
“In India, tenders are invited all One year long. Therefore, we will overview the problem and procure a call accordingly,” he added.
On 10 March this One year, Bangladesh Oil, Gasoline and Mineral Corporation (Petrobangla) floated the realm soft to explore 15 deep-sea and 9 shallow-sea blocks.
Within the foundation, the soft’s submission lower-off date was as soon as order for 9 September. On the opposite hand, the intervening time government, led by Prof Yunus, prolonged it by three months, taking into account the political deliver in the country following the ousting of the Awami League government on 5 August.
According to vitality sources, after the soft was as soon as announced, letters had been sent to 55 companies from diverse worldwide locations, appealing them to take half. Therefore, seven companies purchased the soft paperwork.
But no companies submitted proposals by the closing lower-off date.
Bangladesh resolved its maritime boundary disputes with India in 2012 and Myanmar in 2014. Though a original Manufacturing Sharing Contract (PSC) was as soon as launched in 2019 to facilitate oil and gas exploration in the sea, no tenders had been known as then.
After three years of preparation, the original PSC-2023 was as soon as finalised. No longer like outdated agreements, this PSC did no longer order a mounted mark per unit of gas. As a replacement, the gas mark was as soon as pegged at 10% of world oil costs. As oil costs enlarge, gas costs will furthermore upward push, and in an identical blueprint, they are going to decrease if oil costs plunge.
Challenges in attracting bidders
According to Vitality Division officials, the PSC deliberately kept far flung from surroundings a mounted gas mark to plan world exploration companies.
On the opposite hand, the original decline in world oil costs has made this versatile pricing mannequin much less appealing, discouraging ability investors.
A senior reliable from the Vitality Division, speaking on situation of anonymity, acknowledged that one amongst primarily the most valuable causes for the dearth of hobby from world companies may per chance be the original political deliver in Bangladesh.
One other deliver was as soon as the country’s political scenario. “Oil and gas exploration entails long-term investments,” the reliable added.
“With an intervening time government in order and its tenure perilous, companies are hesitant to commit to long-term, colossal-scale investments. Future governments would per chance also honest re-preserve in thoughts or cancel agreements made by this administration – equal to what the original government is doing – repealing several legal guidelines [from the previous administration] and discussing the reevaluation of agreements”
According to the reliable, the realm oil market deliver would per chance per chance furthermore be a factor.
Petrobangla sources deliver several companies, in conjunction with US-based entirely Chevron and ExxonMobil, Japan’s Inpex and Jogmec, and China’s CNOOC Global Miniature, had purchased multi-dimensional gaze files on Bangladesh’s offshore blocks.
On the opposite hand, none of them in the break participated in the soft.
As adversarial to these companies, Malaysia’s Petronas, the Norway-France joint mission TGS and Schlumberger, Singapore’s KrisEnergy, and India’s ONGC had shown hobby and communicated with Petrobangla at diverse situations concerning ability exploration opportunities.
With a idea to plan hobby from diverse companies, Petrobangla had organised a seminar final Could presumably also following the soft announcement. Over 15 world companies participated in the match.
Throughout the seminar, the outcomes of a 12,000-kilometre 2D seismic gaze performed by TGS and Schlumberger had been presented, showcasing the capability of offshore areas for exploration.
