Staff Reporter :
The state-owned energy company Petrobangla-on Tuesday signed a deal with South Korea’s Posco Daewoo Corporation for exploration of oil and gas from Bblock DS-12 in the deep sea.
Deputy Secretary of Energy and Mineral Resources Division Khadiza Nazneen, Secretary of Petrobangla Syed Ashfaquzzaman and Vice President of Daewoo Se Bo Jo signed the production sharing contract (PSC) on behalf of their respective sides at Petrobangla office in the city.
Prime Minister’s Energy Adviser Dr Tauwfiq-E-Elahi Chowdhury, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Parliamentary Standing Committee Chairman of the Ministry Md. Tajul Islam MP, Energy Division Secretary Nazimuddin Chowdhury and Petrobangla Chairman Abul Hosain Muhammad Faijullah, South Korean Ambassador to Dhaka AHN Seong Doo, CEO of Posco Daewoo Young Sang Kim were also present during the signing ceremony.
According to the contract, the International Oil Company (IOC) would explore gas and oil from 1,000 to 2,000 metres in the deep sea of the Bay of Bengal and sell gas and oil at competitive prices with profit from 65 percent to 90 percent in oil and 85 percent from 60 percent in gas.
Deep sea Block DS-12 located at depths ranging from 20-200 metres comprised an area of 3200-3600 square kilometers in the Bay.
Daewoo accepted the Petrobangla offer at $6.5 per unit (1000 cubic feet), sources said.
As per the contract, Posco Daewoo will conduct a 2D seismic survey and drill an exploration well in the first two years. If the block is found to be potential, the company will conduct a 3D survey.
The Petrobangla selected the Korean company through an unsolicited process under the ‘Special Power and Energy Supply (Special) Act-2010’ and completed all works in this regard. Posco Daewoo is now engaged in exploration work in a nearby gas block in the maritime area of neighbouring Myanmar.
Keeping an option for allowing export, earlier Petrobangla had signed an initial with Posco Daewoo to award the deep sea gas Block DS-12 in the Bay of Bengal for gas exploration.
“If Petrobangla refuses to buy the gas, 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 it,” Energy division sources said.
Deep sea Blocks 10 and 11 were previously awarded to US energy company ConocoPhillips five years ago.
ConocoPhillips took part in bidding for Blocks DS 10 and DS 11 in 2008 and inked a deal with the government in 2011.
At present, three foreign companies – Chevron, Santos and Kris Energy – are working at onshore and shallow sea blocks in the country following international biddings in 1993 and 1997.
Dr Tawfiq-e-Elahi Chowdhury urged Daewoo to complete the exploration work within shortest time.
“We have given importance for four topics including survey, exploration, well digging and LNG import aimed at ensuring energy security,” he said.
Nasrul Hamid said the government is importing LNG and increasing LPG for saving natural gas and supplying it to industries.
“Out of the 15 blocks, exploration of gas and oil is being started from one block and initiative would be taken to search gas and oil rest of the blocks,” he said.
The government has signed the agreement for exploration of the gas and oil from the deep sea after wining of the maritime boundary from Myanmar and India.
The state-owned energy company Petrobangla-on Tuesday signed a deal with South Korea’s Posco Daewoo Corporation for exploration of oil and gas from Bblock DS-12 in the deep sea.
Deputy Secretary of Energy and Mineral Resources Division Khadiza Nazneen, Secretary of Petrobangla Syed Ashfaquzzaman and Vice President of Daewoo Se Bo Jo signed the production sharing contract (PSC) on behalf of their respective sides at Petrobangla office in the city.
Prime Minister’s Energy Adviser Dr Tauwfiq-E-Elahi Chowdhury, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Parliamentary Standing Committee Chairman of the Ministry Md. Tajul Islam MP, Energy Division Secretary Nazimuddin Chowdhury and Petrobangla Chairman Abul Hosain Muhammad Faijullah, South Korean Ambassador to Dhaka AHN Seong Doo, CEO of Posco Daewoo Young Sang Kim were also present during the signing ceremony.
According to the contract, the International Oil Company (IOC) would explore gas and oil from 1,000 to 2,000 metres in the deep sea of the Bay of Bengal and sell gas and oil at competitive prices with profit from 65 percent to 90 percent in oil and 85 percent from 60 percent in gas.
Deep sea Block DS-12 located at depths ranging from 20-200 metres comprised an area of 3200-3600 square kilometers in the Bay.
Daewoo accepted the Petrobangla offer at $6.5 per unit (1000 cubic feet), sources said.
As per the contract, Posco Daewoo will conduct a 2D seismic survey and drill an exploration well in the first two years. If the block is found to be potential, the company will conduct a 3D survey.
The Petrobangla selected the Korean company through an unsolicited process under the ‘Special Power and Energy Supply (Special) Act-2010’ and completed all works in this regard. Posco Daewoo is now engaged in exploration work in a nearby gas block in the maritime area of neighbouring Myanmar.
Keeping an option for allowing export, earlier Petrobangla had signed an initial with Posco Daewoo to award the deep sea gas Block DS-12 in the Bay of Bengal for gas exploration.
“If Petrobangla refuses to buy the gas, 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 it,” Energy division sources said.
Deep sea Blocks 10 and 11 were previously awarded to US energy company ConocoPhillips five years ago.
ConocoPhillips took part in bidding for Blocks DS 10 and DS 11 in 2008 and inked a deal with the government in 2011.
At present, three foreign companies – Chevron, Santos and Kris Energy – are working at onshore and shallow sea blocks in the country following international biddings in 1993 and 1997.
Dr Tawfiq-e-Elahi Chowdhury urged Daewoo to complete the exploration work within shortest time.
“We have given importance for four topics including survey, exploration, well digging and LNG import aimed at ensuring energy security,” he said.
Nasrul Hamid said the government is importing LNG and increasing LPG for saving natural gas and supplying it to industries.
“Out of the 15 blocks, exploration of gas and oil is being started from one block and initiative would be taken to search gas and oil rest of the blocks,” he said.
The government has signed the agreement for exploration of the gas and oil from the deep sea after wining of the maritime boundary from Myanmar and India.
