Bangladesh, Myanmar breaking ice
22 Oct 2012 10:44 PM GMT
At a time when China is deeply embroiled over maritime rights disputes with Japan, Vietnam and the Philippines, Myanmar and Bangladesh are all set to launch oil exploration programmes in the Bay of Bengal region, by mutual consent.
The peaceful settlement of a potential armed confrontation between two of India’s nearest neighbours in late 2008, over maritime rights, has left sections of the Western press wondering why there cannot be such peace between China and its neighbours.
Readers may recall that Bangladesh objected to Myanmar’s decision to allow the Korean company Daewoo to explore the waters close to St Martin’s island in the Bay in late 2008 and early 2009, claiming the area fell within its maritime zone. Then under army rule, Myanmar sent its armed vessels to protect Daewoo’s equipment. Bangladesh responded by dispatching its own vessels. It also called in the US company Conoco Phillips to carry out oil exploration. Before matters worsened further, Bangladesh suggested that both countries take up the question of respective rights at the International Court of Justice.
Eventually, both countries went to the International Tribunal on the Law of the Seas [ITLOS] in Hamburg. It ruled that the disputed area indeed was well within Bangladesh’s jurisdiction, which did not make the ruling Myanmar junta very happy. But the Tribunal also held that 60 per cent of the territorial waters in dispute, about 1,71,000 square kilometers, belonged to Myanmar, while the rest 40 per cent, about 1,10,000 sq kms, belonged to Bangladesh. Western agencies report that hardline the Burmese opinion was not satisfied with the verdict. Many felt that Bangladesh had got away with a very good deal and had virtually taken home an additional area of nearly 4,000 sq kms. The countries had their disagreements about the limits of territorial jurisdiction over the Bay for a long time.
However, the transition to political democracy in Myanmar has definitely helped both sides to accept the verdict of an international legal authority and there is now no tension over this once contentious issue between them.
So it turns out that Bangladesh, according to a Canada-based daily, will open three deep water and nine shallow water blocks for exploration later this month, while Myanmar will offer 35 blocks for inspection and exploration.
The peaceful resolution of the dispute over territorial waters may also help Bangladesh in securing another of its long-term regional objectives – direct participation with Myanmar in oil/gas exploration efforts in the energy rich Bay area, Bangladesh had put forward its proposal long time ago. Myanmar authorities, considering the matter had finally indicated that they would examine the proposal seriously after they estimated the domestic demand and worked out just how much could be exported.
Kolkata-based observers point out that relations between India’s two Eastern neighbours, despite occasional glitches over the problematical Rohingiya issue and the dispute over territorial waters, were by and large peaceful and constructive over the years. Burma was one of the countries that recognised Bangladesh at the earliest, in 1972.
The countries then worked out three bilateral agreements relating to the repatriation of refugees, a general trade agreement and an accord on settling boundaries, by 1985. Bilateral trade, standing at around $140 million in 2008, rose to over $500 million by 2010. Bangladesh exported cotton fabric, raw jute, pharmaceuticals, kitchen equipment and other items. Later, Bangladesh and Myanmar cooperated in road building projects linking Kunming in China to Chittagong in Bangladesh through Burmese territory. The two sides also finalised power projects from which Bangladesh would draw electricity after meeting the needs of the Rakhine province in Myanmar’s West.
Meanwhile, experts feel there are shale gas reserves to be found in Bangladesh too, following a recent discovery in West Bengal. Such a possibility, coupled with the recent discovery of oil in the Sylhet district of Bangladesh, brightens the emerging energy scenario for the east/northeast region in South Asia, say observers.
A team of experts from the US will visit Bangladesh shortly to help the country explore its estimated shale gas resources. This follows an initiative outlined by US Secretary of state Hillary Clinton during her visit to the country. Dhaka-based media report that the US considered Bangladesh to be an energy rich country. Most of American investments in Bangladesh have been made in the energy sector.
The first shale gas reserves in the world, apart from the US and Canada, were recently found in Burdwan, West Bengal. Spread over a 12,000 sq kms area, in the Durgapur/Raniganj belt, ONGC sources confirmed the presence of gas, trapped between layers of sedimentary rocks.
Scientists of the Dehra Dun-based Keshav Dev Malviya Institute of Petrol Exploration confirmed the gas found as ‘pure natural gas, fit for use in cooking and other commercial purposes.’ Experts estimated the size of the reserves to be ranging from 600 to 2,000 trillion cubic feet, adequate to serve the country’s need for 50 years or more.
At present, the central government is carrying out extensive exploration and mapping work to gauge the extent of shale gas in the country. This phase should be completed by 2013, by which time it would be possible to identify different blocks for commercial extraction and allotment via tenders.
In Bangladesh, reports suggest that the US proposes to enter into a partnership with Dhaka in the energy sector. It would provide specialised equipment to explore and draw shale gas and also help the commercial mining of large coal deposits. Recent surveys suggest that Bangladesh has large deposits of very high quality coal that should meet the country’s needs and can be exported, for over 50 years. US Ambassador to Bangladesh, Dan Mozena recently outlined how the US would help Bangladesh at a meeting of the USAID authorities.
The US firm Chevron proposes to invest $500 million to carry out exploration for gas and Conoco Philips group is about to acquire at least one block in the bay of Bengal offshore area, for energy exploration and extraction efforts. [IPA]
The peaceful settlement of a potential armed confrontation between two of India’s nearest neighbours in late 2008, over maritime rights, has left sections of the Western press wondering why there cannot be such peace between China and its neighbours.
Readers may recall that Bangladesh objected to Myanmar’s decision to allow the Korean company Daewoo to explore the waters close to St Martin’s island in the Bay in late 2008 and early 2009, claiming the area fell within its maritime zone. Then under army rule, Myanmar sent its armed vessels to protect Daewoo’s equipment. Bangladesh responded by dispatching its own vessels. It also called in the US company Conoco Phillips to carry out oil exploration. Before matters worsened further, Bangladesh suggested that both countries take up the question of respective rights at the International Court of Justice.
Eventually, both countries went to the International Tribunal on the Law of the Seas [ITLOS] in Hamburg. It ruled that the disputed area indeed was well within Bangladesh’s jurisdiction, which did not make the ruling Myanmar junta very happy. But the Tribunal also held that 60 per cent of the territorial waters in dispute, about 1,71,000 square kilometers, belonged to Myanmar, while the rest 40 per cent, about 1,10,000 sq kms, belonged to Bangladesh. Western agencies report that hardline the Burmese opinion was not satisfied with the verdict. Many felt that Bangladesh had got away with a very good deal and had virtually taken home an additional area of nearly 4,000 sq kms. The countries had their disagreements about the limits of territorial jurisdiction over the Bay for a long time.
However, the transition to political democracy in Myanmar has definitely helped both sides to accept the verdict of an international legal authority and there is now no tension over this once contentious issue between them.
So it turns out that Bangladesh, according to a Canada-based daily, will open three deep water and nine shallow water blocks for exploration later this month, while Myanmar will offer 35 blocks for inspection and exploration.
The peaceful resolution of the dispute over territorial waters may also help Bangladesh in securing another of its long-term regional objectives – direct participation with Myanmar in oil/gas exploration efforts in the energy rich Bay area, Bangladesh had put forward its proposal long time ago. Myanmar authorities, considering the matter had finally indicated that they would examine the proposal seriously after they estimated the domestic demand and worked out just how much could be exported.
Kolkata-based observers point out that relations between India’s two Eastern neighbours, despite occasional glitches over the problematical Rohingiya issue and the dispute over territorial waters, were by and large peaceful and constructive over the years. Burma was one of the countries that recognised Bangladesh at the earliest, in 1972.
The countries then worked out three bilateral agreements relating to the repatriation of refugees, a general trade agreement and an accord on settling boundaries, by 1985. Bilateral trade, standing at around $140 million in 2008, rose to over $500 million by 2010. Bangladesh exported cotton fabric, raw jute, pharmaceuticals, kitchen equipment and other items. Later, Bangladesh and Myanmar cooperated in road building projects linking Kunming in China to Chittagong in Bangladesh through Burmese territory. The two sides also finalised power projects from which Bangladesh would draw electricity after meeting the needs of the Rakhine province in Myanmar’s West.
Meanwhile, experts feel there are shale gas reserves to be found in Bangladesh too, following a recent discovery in West Bengal. Such a possibility, coupled with the recent discovery of oil in the Sylhet district of Bangladesh, brightens the emerging energy scenario for the east/northeast region in South Asia, say observers.
A team of experts from the US will visit Bangladesh shortly to help the country explore its estimated shale gas resources. This follows an initiative outlined by US Secretary of state Hillary Clinton during her visit to the country. Dhaka-based media report that the US considered Bangladesh to be an energy rich country. Most of American investments in Bangladesh have been made in the energy sector.
The first shale gas reserves in the world, apart from the US and Canada, were recently found in Burdwan, West Bengal. Spread over a 12,000 sq kms area, in the Durgapur/Raniganj belt, ONGC sources confirmed the presence of gas, trapped between layers of sedimentary rocks.
Scientists of the Dehra Dun-based Keshav Dev Malviya Institute of Petrol Exploration confirmed the gas found as ‘pure natural gas, fit for use in cooking and other commercial purposes.’ Experts estimated the size of the reserves to be ranging from 600 to 2,000 trillion cubic feet, adequate to serve the country’s need for 50 years or more.
At present, the central government is carrying out extensive exploration and mapping work to gauge the extent of shale gas in the country. This phase should be completed by 2013, by which time it would be possible to identify different blocks for commercial extraction and allotment via tenders.
In Bangladesh, reports suggest that the US proposes to enter into a partnership with Dhaka in the energy sector. It would provide specialised equipment to explore and draw shale gas and also help the commercial mining of large coal deposits. Recent surveys suggest that Bangladesh has large deposits of very high quality coal that should meet the country’s needs and can be exported, for over 50 years. US Ambassador to Bangladesh, Dan Mozena recently outlined how the US would help Bangladesh at a meeting of the USAID authorities.
The US firm Chevron proposes to invest $500 million to carry out exploration for gas and Conoco Philips group is about to acquire at least one block in the bay of Bengal offshore area, for energy exploration and extraction efforts. [IPA]
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