Petrobangla, the state-owned oil and gas company, has send invitation letters to Indian oil giant ONGC Videsh Ltd and US-based ConocoPhillips Asia Pacific New Venture, to explore oil and gas in shallow waters of the Bay of Bengal. “We’re all set to sign the initial contract, as we have completed all procedural jobs. We have faxed the message to the IOCs (international oil companies), in this regard,” Petrobangla chairman, Dr Hossain Monsoor, told The Independent.
Earlier, Petrobangla had selected Indian oil giant ONGC Videsh Ltd and the US-based ConocoPhillips Asia Pacific New Venture, to explore, respectively, SS-04 and SS-09, and SS-07 blocks of shallow water in the Bay.
According to the new PSC, there is no scope to export oil and gas, but gas can be sold to a third party inside Bangladesh. Petrobangla has completed the re-mapping of offshore blocks, and has prepared the draft model PSC for Offshore Bidding Round 2012, by creating three blocks in the deep sea in the eastern part, and identified nine blocks in shallow water that are situated in undisputed areas, in accordance with the verdict of the International Tribunal for the Law of the Sea (ITLOS).
According to the offer, ONGC Videsh Ltd will spend USD 58 million at Block SS-04 (over an area of about 7,271 sq km). to conduct a two-dimensional seismic survey of 1,200 “line kilometres”, and drill one well, in the initial mandatory work programme, of five years, for exploration. Subsequently, it will conduct a survey over 500 line kilometres, 200 sq. km. 3-D seismic survey, and drill one well. It will spend USD 85 million to conduct a 3-D seismic survey, at Block SS-09 (about 7,022 km.) of 300 sq km, and for drilling two exploration wells in the first extension period of two years, and four exploration wells in the second extension period of two years.
ConocoPhillips has offered to conduct a 2-D seismic survey at Block SS-07 (about 5,776 sq km) of 1,347 “line kilometres”, and one well, in the initial mandatory work programme of five years, for exploration. Subsequently, it will conduct survey over 1,000 line kilometres and 500 sq km.
The two companies will deposit bank guarantees of the same amount, as they have proposed at the time of bidding. “Following the initial talks between the IOC’s and Petrobangla, we need to take steps to sign the final Production Sharing Contract (PSC). However, another month is needed for us to be able to sign the final PSC for these three blocks,” Petrobangla’s director, PSC, Muhammad Immaduddin, said.
-With The Independent input
