UNB, Dhaka :
Keeping an option for allowing export, state-owned Petrobangla signed an initial deal on Wednesday with Posco Daewoo International Corporation to award the deep sea gas block DS-12 in the Bay of Bengal for gas exploration.
The final deal between the two sides will be signed after vetting by the Law Ministry and approval by the Cabinet Purchase Committee. Petrobangla director (PSC) Mahbub Sarwar and Posco Daewoo new venture exploration manager Junggooo Junn signed the contract on behalf of their respective sides.
Energy secretary Nazim Uddin Chowdhury and other top officials of Petrobangla and Posco Daewoo were present on the occasion. The government awarded the contract under the ‘Prompt Power and Energy Supply (Special) Act-2010’ which means there was no open competitive bidding process in awarding the contract.
After the discovery of any gas, the South Korean company will offer Petrobangla
to buy its portion of gas to be obtained under production sharing contract (PSC), according to the export provision.
“If Petrobangla refuses to buy the gas, then Posco Daewoo will offer a third party within the country to buy it. If the third party refuses then the Korean company will be allowed to export,” said deputy general manager of Petrobangla chairman Istiaque Ahmad at the signing ceremony.
Keeping an option for allowing export, state-owned Petrobangla signed an initial deal on Wednesday with Posco Daewoo International Corporation to award the deep sea gas block DS-12 in the Bay of Bengal for gas exploration.
The final deal between the two sides will be signed after vetting by the Law Ministry and approval by the Cabinet Purchase Committee. Petrobangla director (PSC) Mahbub Sarwar and Posco Daewoo new venture exploration manager Junggooo Junn signed the contract on behalf of their respective sides.
Energy secretary Nazim Uddin Chowdhury and other top officials of Petrobangla and Posco Daewoo were present on the occasion. The government awarded the contract under the ‘Prompt Power and Energy Supply (Special) Act-2010’ which means there was no open competitive bidding process in awarding the contract.
After the discovery of any gas, the South Korean company will offer Petrobangla
to buy its portion of gas to be obtained under production sharing contract (PSC), according to the export provision.
“If Petrobangla refuses to buy the gas, then Posco Daewoo will offer a third party within the country to buy it. If the third party refuses then the Korean company will be allowed to export,” said deputy general manager of Petrobangla chairman Istiaque Ahmad at the signing ceremony.
