Bangladesh woos foreign cos to explore offshore gas
10 Dec 2012 6:39 AM IST
Bangladesh on Sunday invited bids from international companies to explore offshore oil and gas reserves, an official said, as the fast-growing economy seeks to meet its soaring energy demands.
State energy group Petrobangla director Muhammad Imaduddin said that nine shallow-water and three deep-water blocks in the Bay of Bengal are open for production-sharing contracts with companies. He said that the blocks would be awarded to eligible firms by the end of next June, with the submission deadline in mid-March.
The Offshore Bidding Round 2012 will be the sixth in the history of Bangladesh, which has extensive gas reserves but is facing a shortfall due to soaring consumption. The authorities offered the blocks after a UN tribunal in March this year ended a long-standing territorial dispute between Bangladesh and Myanmar in the gas-rich Bay of Bengal. In 2009, Dhaka’s bidding for offshore energy search got a tepid response as only US giant ConocoPhillips signed deals for two of the 28 blocks on offer, including some to which Myanmar and India made territorial claims.
‘This time we are optimistic about attracting more companies. All 12 blocks are in undisputed Bangladeshi waters,’ said Imaduddin.
Bangladesh is urgently trying to locate sources of energy as the nation’s current gas reserves, at 16.3 trillion cubic feet, may run out within a decade at present consumption rates. The country’s economy has been growing at more than 6 per cent annually over the last decade, with industrial growth hovering around 10 per cent in several years.
State energy group Petrobangla director Muhammad Imaduddin said that nine shallow-water and three deep-water blocks in the Bay of Bengal are open for production-sharing contracts with companies. He said that the blocks would be awarded to eligible firms by the end of next June, with the submission deadline in mid-March.
The Offshore Bidding Round 2012 will be the sixth in the history of Bangladesh, which has extensive gas reserves but is facing a shortfall due to soaring consumption. The authorities offered the blocks after a UN tribunal in March this year ended a long-standing territorial dispute between Bangladesh and Myanmar in the gas-rich Bay of Bengal. In 2009, Dhaka’s bidding for offshore energy search got a tepid response as only US giant ConocoPhillips signed deals for two of the 28 blocks on offer, including some to which Myanmar and India made territorial claims.
‘This time we are optimistic about attracting more companies. All 12 blocks are in undisputed Bangladeshi waters,’ said Imaduddin.
Bangladesh is urgently trying to locate sources of energy as the nation’s current gas reserves, at 16.3 trillion cubic feet, may run out within a decade at present consumption rates. The country’s economy has been growing at more than 6 per cent annually over the last decade, with industrial growth hovering around 10 per cent in several years.
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