Anisul Islam Noor :
State-run Petrobangla has been working on demarcation of the country’s onshore hydrocarbon blocks for offering it to International Oil Companies (IOCs) under the new bidding round, said Petrobangla Chairman Istiaque Ahmad.
“A new Model Production-Sharing Contract (MPSC) is also being prepared to lure the IOCs in taking part in the planned bidding,” he told The New Nation on Tuesday.
Petrobangla officials said, the government has decided to launch a fresh bidding round for onshore blocks for oil and gas exploration after a lull of around two decades.
However, they did not disclose any particular time to launch the bidding. But some insiders hinted that tender could be floated by December next.
Bangladesh will keep some onshore blocks for exploration only by state-run Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), officials said.
Currently, Bangladesh has around a dozen onshore blocks. But the blocks might be re-marked before launching of the new bidding round, said a senior Petrobangla official.
Bangladesh has moved to offer onshore blocks to IOCs following a recommendation made by the Japan International Cooperation Agency (JICA) in its proposed Power System Master Plan for Bangladesh, said an official of the Ministry of Power, Energy and Mineral Resources.
Different IOCs working in Bangladesh, including US-based Chevron, have also been eyeing to get engaged more in new onshore blocks in the country, he said.
Bangladesh did not offer any onshore oil-gas blocks for exploration by IOCs since 1997.
Bangladesh launched two international bidding rounds exclusively for offshore blocks in 2008 and 2012.
The outcome of the two consecutive bidding rounds, exclusively for offshore blocks in the past eight years, did not bring any expected result for the country as not a single commercial discovery of hydrocarbons has been made by the IOCs.
According to Petrobangla, Bangladesh first launched its bidding round for offshore blocks within three years of achieving independence in 1974.
The 1974 round was limited to near offshore areas, when six of the then seven blocks were contracted to Atlantic Richfield (ARCO), Ashland Oil, Union Oil, Canadian Superior, BODC and Yugoslav Oil Company INA Naftaplin. These companies conducted 31,069 km of marine seismic surveys, drilled 7 wells and discovered Kutubdia Gas Field in 1977.
In the meantime, Shell Oil Company signed and explored blocks in Chittagong Hill Tracts (block 22), and North West Bangladesh (block 23), conducted seismic survey and drilled two wells at Sitapahar and Salbanhat.
Scimitar Exploration undertook a PSC for exploration of oil in the Surma basin, or block 13, but could discover only gas in Jalalabad field, Petrobangla statistics showed.
Bangladesh launched next bidding in 1993 when 23 onshore and offshore blocks were offered.
Under the 1993 bidding, eight blocks were awarded to four companies which were Occidental (OXY) for blocks 12, 13 and 14, Cairn Energy for blocks 15 and 16, Okland-Rexwood for blocks 17 and 18 and United Meridian Corporation (UMC) block 22.
During the 1997 bidding, four blocks were awarded. Irish Tullow, Chevron-Texaco and BAPEX were jointly awarded block 9, Shell, Cairn and BAPEX blocks 5 and 10 and Unocal and BAPEX block 7.
Under the 2012 bidding round, PSCs for three shallow water blocks were signed..ONGC Videsh, Oil India and BAPEX joint venture signed two PSCs for blocks SS-04 and SS-09, while Santos, KrisEnergy and BAPEX joint venture was contracted for block SS-11.
Since the start of PSC operations in Bangladesh, a total of 27 exploration wells have been drilled resulting in discovery of six gas fields.
The producing gas fields under PSC have a total of 76 wells out of which 30 are currently producing.
Offshore bidding round in 2008 attracted some bids, but the maritime boundary dispute in most of the blocks created a stalemate.
Bangladesh, however, succeeded to sign one PSC for two deep sea blocks DS-10 and DS-11 with ConocoPhillips on June 16, 2011. The US firm later left the blocks finding those ‘economically non-viable,’
After the delimitation of the boundary between Bangladesh and Myanmar in March, 2012, Petrobangla reshaped the blocks considering the new boundary and announced a bidding round in December 2012.
State-run Petrobangla has been working on demarcation of the country’s onshore hydrocarbon blocks for offering it to International Oil Companies (IOCs) under the new bidding round, said Petrobangla Chairman Istiaque Ahmad.
“A new Model Production-Sharing Contract (MPSC) is also being prepared to lure the IOCs in taking part in the planned bidding,” he told The New Nation on Tuesday.
Petrobangla officials said, the government has decided to launch a fresh bidding round for onshore blocks for oil and gas exploration after a lull of around two decades.
However, they did not disclose any particular time to launch the bidding. But some insiders hinted that tender could be floated by December next.
Bangladesh will keep some onshore blocks for exploration only by state-run Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), officials said.
Currently, Bangladesh has around a dozen onshore blocks. But the blocks might be re-marked before launching of the new bidding round, said a senior Petrobangla official.
Bangladesh has moved to offer onshore blocks to IOCs following a recommendation made by the Japan International Cooperation Agency (JICA) in its proposed Power System Master Plan for Bangladesh, said an official of the Ministry of Power, Energy and Mineral Resources.
Different IOCs working in Bangladesh, including US-based Chevron, have also been eyeing to get engaged more in new onshore blocks in the country, he said.
Bangladesh did not offer any onshore oil-gas blocks for exploration by IOCs since 1997.
Bangladesh launched two international bidding rounds exclusively for offshore blocks in 2008 and 2012.
The outcome of the two consecutive bidding rounds, exclusively for offshore blocks in the past eight years, did not bring any expected result for the country as not a single commercial discovery of hydrocarbons has been made by the IOCs.
According to Petrobangla, Bangladesh first launched its bidding round for offshore blocks within three years of achieving independence in 1974.
The 1974 round was limited to near offshore areas, when six of the then seven blocks were contracted to Atlantic Richfield (ARCO), Ashland Oil, Union Oil, Canadian Superior, BODC and Yugoslav Oil Company INA Naftaplin. These companies conducted 31,069 km of marine seismic surveys, drilled 7 wells and discovered Kutubdia Gas Field in 1977.
In the meantime, Shell Oil Company signed and explored blocks in Chittagong Hill Tracts (block 22), and North West Bangladesh (block 23), conducted seismic survey and drilled two wells at Sitapahar and Salbanhat.
Scimitar Exploration undertook a PSC for exploration of oil in the Surma basin, or block 13, but could discover only gas in Jalalabad field, Petrobangla statistics showed.
Bangladesh launched next bidding in 1993 when 23 onshore and offshore blocks were offered.
Under the 1993 bidding, eight blocks were awarded to four companies which were Occidental (OXY) for blocks 12, 13 and 14, Cairn Energy for blocks 15 and 16, Okland-Rexwood for blocks 17 and 18 and United Meridian Corporation (UMC) block 22.
During the 1997 bidding, four blocks were awarded. Irish Tullow, Chevron-Texaco and BAPEX were jointly awarded block 9, Shell, Cairn and BAPEX blocks 5 and 10 and Unocal and BAPEX block 7.
Under the 2012 bidding round, PSCs for three shallow water blocks were signed..ONGC Videsh, Oil India and BAPEX joint venture signed two PSCs for blocks SS-04 and SS-09, while Santos, KrisEnergy and BAPEX joint venture was contracted for block SS-11.
Since the start of PSC operations in Bangladesh, a total of 27 exploration wells have been drilled resulting in discovery of six gas fields.
The producing gas fields under PSC have a total of 76 wells out of which 30 are currently producing.
Offshore bidding round in 2008 attracted some bids, but the maritime boundary dispute in most of the blocks created a stalemate.
Bangladesh, however, succeeded to sign one PSC for two deep sea blocks DS-10 and DS-11 with ConocoPhillips on June 16, 2011. The US firm later left the blocks finding those ‘economically non-viable,’
After the delimitation of the boundary between Bangladesh and Myanmar in March, 2012, Petrobangla reshaped the blocks considering the new boundary and announced a bidding round in December 2012.
