IOCs surpass state-run cos in gas production

Chevron allowed to extract more gas than tolerable capacity
Aminul Islam
The daily gas production by the international oil companies in the last few days has exceeded that of the state-run companies for the first time because of the successive governments’ refusal to provide the latter with the required fund to explore and develop gas-fields.
Of the total daily supply of 1,822 million cubic feet of gas, four IOCs are currently supplying around 919 million cubic feet of high-priced gas while the three state-run companies are producing 902 mmcfd as Petrobangla is allowing US company Chevron to extract more gas from the Bibiyana field than the tolerable capacity, putting it into danger.
The total share of the IOCs’ gas was only 24 per cent in the 2003-2004 fiscal year. During that fiscal year the average production by two IOCs was 300.46 mmcfd while the state-run companies produced 939 mmcfd.
The IOC’s share of the gas increased to 36 per cent in the 2006-2007 fiscal year with their daily production of 557 mmcfd when the production was around 1,538 mmcfd on an average. The state-run companies at that time produced around 981 mmcfd of gas.
Currently the IOC’s share stands at 50.48 per cent against the state-run companies’ 49.52 as gas production of the Bangladesh Gas Fields Company Ltd, Sylhet Gas Fields Ltd and Bangladesh Petroleum Exploration and Production Company has decreased in the last two years.
‘It has been known for the last few months that the IOCs’ gas production would exceed that of the local companies as no new gas-fields have been discovered,’ energy expert Nurul Islam of the BUET told New Age on Friday.
He said that the current situation was created because of the successive governments’ apathy towards exploration and development work by the state-run companies.
‘The governments neither paid proper gas price to the gas companies nor gave them adequate fund. As a result we are paying foreigners relatively higher prices for our own gas,’ he said.
Professor Islam said that Petrobangla was forced to purchase more gas from IOCs to meet the ever-growing demand. ‘We need gas from the IOCs but at the same time the state-run companies should be given more funds or the price paid to them should be increased so that a balance of production can be created,’ he said.
Petrobangla officials claimed that they were counting a loss of around Tk 80 crore per month by purchasing gas from IOCs at prices that are higher than the price which consumers pay.
Petrobangla purchases gas from the local companies at a rate of around Tk 7-25 per 1,000 cubic feet while the price for the gas from the fields operated by the IOCs stands at around Tk 130 including the Petrobongla’s ‘profit gas’ and corporate taxes.
Informed sources said that the total share of the IOCs’ gas had increased in the last few days as Petrobangla was allowing Chevron to produce around 515 mmcfd of gas although an experts’ committee had warned Petrobangla that the field should not produce more than 450 mmcfd to prevent the premature exhaustion of the gas reservoir.
‘It seems that some Petrobangla officials, for reasons of their own, are determined to allow Chevron to extract more gas so that it can recover its cost and make a profit as early as possible,’ said a source.
A high official of Petrobangla claimed that as per the contract with Chevron they were bound to take around 500 mmcfd of gas from the Bibiyana field. Sources in Petrobangla, however, dismissed the claim.
‘Besides the demand for gas has increased because of increase in consumption during the winter, forcing us to take additional gas from Bibiyana,’ claimed the above-mentioned official.
He said that the share of gas of the state-run companies would increase again once the Titas gas-field’s no. 14 well starts production of around 30 mmcfd soon. ‘We also want that our companies’ share of gas will remain high because of the low price, but the current demand has forced us to buy more gas from the IOCs,’ he said.

Courtesy: newagebd.com

Related News

The WB will revive Dhaka’s rivers

$20b project plan News Desk : dhakamirror.com The World Bank will lead a $20 billion project to restore Dhaka’s five rivers. “We see the World Bank’s imprint in countries where it has large-scale operations. Bangladesh lacks World Bank signage. It’s hard to spot the World Bank here,” Finance Minister AHM Mustafa Kamal recalled his conversation ... Read more

Bangladesh lifts ban on visiting tourists

World Tourism Day today News Desk : dhakamirror.com The government is set to withdraw embargo on the visit of foreign tourists to Bangladesh as the National Technical Advisory Committee on Covid-19 on Monday recommended doing so if the tourists can show their ‘full vaccine certificates’ on arrival. Civil aviation and tourism state minister Md Mahbub ... Read more

UNICEF Bangladesh Ambassador Mim visits children affected by the floods

News Desk : dhakamirror.com UNICEF National Ambassador for Bangladesh Bidya Sinha Mim is visiting Sylhet this week to meet children whose lives have been upended by floods that ravaged northeastern Bangladesh in May and June this year, according to a press release Thursday. The widespread flooding affected the lives of 7.2 million people, including 3.5 ... Read more

Bangladesh plans to hire 6,000 social workers to improve child protection services

News Desk : dhakamirror.com Bangladesh plans to hire 6,000 additional social workers to improve the effectiveness of the provision of child protection services at the local level. This hiring will increase the workforce from the current 3,000 social workers to 9,000, representing a 200% increase in the number of social workers. The statement was made ... Read more

SSC, HSC equivalent exams for 2023 will be held on all subjects

News Desk : dhakamirror.com The Secondary School Certificate, Higher Secondary Certificate and equivalent examinations will be held on all subjects and with full marks from 2023, said a circular issued on Sunday. Inter-Education Board Coordination Committee released a circular in this regard that was signed by its chief, professor Tapan Kumar Sarkar on Sunday. The ... Read more

SSC, equivalent exams begin today

News Desk : dhakamirror.com The Secondary School Certificate and its equivalent examinations for 2022 are going to start from today. Some 2,021,868 students are expected to take part in the examinations this year. Of them, 1,599,711 would participate in SSC, 2,68,495 in Dakhil, and 153,662 in vocational examinations. Some 3,790 centres were made available for ... Read more

International Literacy Day: Government now aims 100% literacy by 2030

News Desk : dhakamirror.com About 24.40 percent of adults aged 15 and over remain illiterate, although the ruling Awami League pledged in its 2008 election manifesto to end illiteracy by 2014. The goal of achieving universal literacy by 2014 was also set out in the National Education Policy 2010 created in 2009 by the AL-led ... Read more

Uber made BDT 45 billion in economic contributions to Bangladesh Last year: report

News Desk : dhakamirror.com Public First, a UK-based policy research firm, conducted the research and produced the Ubers 2021 Bangladesh Economic Impact Report, which was released today at a ceremony in the capital. The study shows how Uber is helping to transform the on-demand economy for users, driver partners and the general public by producing ... Read more

Tea workers return to work after 15 days

Many of them say Tk-50 hike inconsistent with current prices of essentials Mintu Deshwara After a 15-day work abstention, tea workers resumed work for a daily wage of Tk 170 yesterday morning. Majority of them expressed their dissatisfaction over the Tk 50 pay hike and said they resumed work as they had no alternative. “My ... Read more

Impact of climate change: 14.8 million people at danger of starvation by 2030

News Desk : dhakamirror.com According to the Global Food Policy Report-2022, 14.8 million people would be at danger of becoming hungry by 2030 as a result of climate change. The analysis, created by the International Food Policy Research Institute (IFPRI) says, 11.3 million people would go hungry in 2030 if climate change had no effect. ... Read more

National Mourning Day today

The nation is set to observe National Mourning Day today. The government and numerous political, socio-economic and cultural organisations have chalked out programmes to mark the 47th martyrdom anniversary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman and his family members. On this day in 1975, Bangabandhu was brutally assassinated by a group of ... Read more

Tea garden workers begin strike for wage hike

Zaman Monir Bangladesh Cha Shramik Union, an organisation of tea garden workers, went on a countrywide strike from Saturday for an indefinite period demanding a hike in their daily wages. Leaders and activists of the organisation’s Sylhet and Chattogram divisional units expressed their solidarity on Friday night with the organisation’s Moulvibazar unit that the daily ... Read more

Over 14,000 children die of drowning in Bangladesh annually: WHO, UNICEF

News Desk : dhakamirror.com In Bangladesh, more than 14,000 children drown each year, according to a joint media release from the World Health Organization and UNICEF. Over 14,000 children in Bangladesh die from drowning each year, making it the second largest cause of mortality for children under the age of five in the country. The ... Read more

HC bans rooftop train journey

Action against rail officials if passengers travel on train roof News Desk : dhakamirror.com The Bangladesh Railway authorities were criticized by the High Court on Thursday (July 21, 2022) for poor administration of the railway services, including ticket scalping, and it was noted that no passenger is allowed to ride on the train roof. “If ... Read more

Nation celebrating Eid-ul-Azha

Eid-ul-Azha, one of the biggest religious festivals of the Muslims, is being celebrated across Bangladesh on Sunday with due solemnity, a sense of sacrifice and religious fervour amid the Covid outbreak for the second consecutive year.The celebrations began with Eid congregations all over the country followed by the sacrifice of cattle head in the name ... Read more

No motorcycle registration without driver’s license

News Desk : dhakamirror.com On Tuesday, the Bangladesh Road Transport Authority said that starting on September 15, no registration number will be assigned to any motorcycle if the driver lacked a valid driving license.The order, issued by the authority, was given to inform people about it, said the BRTA director (engineering) Sitangshu Shekhar Biwas.Currently, the ... Read more

PM Hasina inaugurates Padma Bridge

Prime minister Sheikh Hasina inaugurated the Padma Multipurpose Bridge on Saturday. The prime minister unveiled the inauguration plaque of the much-anticipated 6.15 kilometre Padma Bridge for vehicular movement at 11:58am at Mawa end. Speaking at the auspicious moment of inaugurating the bridge, an emotion-choked prime minister remembered Bangabandhu Sheikh Mujibur Rahman and the family members ... Read more

Physical work of Bangladesh’s First underground metro rail to begin in Sept

News Desk : dhakamirror.com Physical work on Bangladesh’s first underground metro rail, formerly known as Mass Rapid Transit Line-1, or MRT-1, will start within September this year. MAN Siddique, managing director of Dhaka Mass Transit Company Ltd, revealed the information at a press conference at Bangabandhu International Convention Centre in Dhaka, on Wednesday. He said ... Read more

SSC, equivalent exams postponed due to worsening flood situation

The government on Friday postponed this year’s Secondary School Certificate and equivalent examinations, scheduled to begin on June 19, due to the worsening flood situation. A press release, issued by the education ministry on the day, said that due to worsening flood situation SSC general, SSC vocational and Dakhil examinations under all boards are being ... Read more

Army deployed to manage heavy flooding in Sylhet: ISPR

Members of Bangladesh Army have been deployed to manage the heavy flooding and its aftermath in Sylhet district. The deployment comes following a request from the civil administration, according to the ISPR. Talking to our Sylhet correspondent, Mujibur Rahman, deputy commissioner of Sylhet, said members of Bangladesh Army will rescue marooned people using boats. The ... Read more