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Petrobangla to amend Model PSC further to attract IOCs in offshore gas exploration
State-owned hydrocarbon corporation Petrobangla has moved to further amend the Model Production Sharing Contract (PSC) 2019 in order to attract international oil companies (IOCs) amid hike in fuel prices in the international market.
The principal upstream energy body is going to appoint an experienced foreign consultant to draw the amendments that would convince the IOCs to invest in Bangladesh’s offshore gas fields.
“We’ve already sought expression of interest (EOI) from interested parties to choose a consultant for the job,” Shahnewaz Parvez, General Manager (Contract) of Petrobangla, told UNB.
He informed that November 21 has been set as the deadline to submit the EIO by the interested bidders.
Official sources said the recent excessive hike in petroleum fuel, especially that of the liquefied natural gas (LNG) has prompted the government to go for further amending the existing PSC to attract the IOCs to invest in Bangladesh’s offshore gas blocks.
Read: India looking for more foreign investments in Oil sector: minister
The country has now a total of 48 blocks of which 26 are located in offshore areas and 22 onshore. Of the 26 offshore blocks, 11 are located in shallow sea (SS) water while 15 are located in deep sea (DS) water areas.
Of these, 24 offshore gas blocks remained open for IOCs while two blocks —SS-04 and SS-09—are under contract with a joint venture of ONGC Videsh Ltd and Oil India Ltd where drilling works have recently started.
Official sources said that the government had amended the Model PSC last in mid of 2019 raising the gas price for IOC to $5.5 per thousand cubic feet (MCF) for shallow water blocks while $7.25 per MCF for deep sea blocks from the below $5 per MCF.
Read: The 'Future' of Reliance: A mega deal destined to shape future of India;s retain space post covid
There was a target to invite international bidding in March 2020 for exploration in offshore areas, which was postponed due to the Coronavirus pandemic that emerged at exactly the same time.
“The recent upward trend in oil and gas price has pushed the policymakers to further raise the gas price by introducing much more flexibility and incentives including keeping the export option open in the PSC”, said another Petrobangla official.
He dropped an indication that gas price might be increased up to $7.25 per MCF for shallow sea blocks while $8.5 per MCF for deep sea blocks considering the upward global trend in petroleum price.
He mentioned that the government had to import LNG at $36 per MMBtu while it was just below $10 early this year.
Recently, the World Bank also made a prediction that the petroleum price might not see any fall until the end of 2022.
Under a Model PSC, normally, if any IOC discovers gas, it gets 40 per cent stake while the government obtains the remaining 60 per cent.
The government also buys the IOC’s gas at a certain price. So, if gas price is raised, IOCs feel encouraged to invest in exploration works, said the Petrobangla officials.
They said this is the first time, at least a 15-year experienced foreign firm will be hired to help the government to prepare the amendments in the PSC as foreign companies can give best suggestions as to which kind of incentives be offered to attract IOCs.
Officials said the Energy Division had instructed Petrobangla to hire such a consultant in February this year. But negligence of some top officials delayed the work.
They said Petrobangla now plans to complete the appointment of consultants within the next two months and receive their report by April next year. It hopes to complete the amendments by May and invite international bidding for IOCs in June next year in order to start exploration works before the end of 2022.
Officials said that the foreign contractor, which was awarded a contract to conduct multi-client seismic survey in the offshore sea blocks, has also suggested updating the Model PSC to attract IOCs in the changed scenario in the global petroleum market.
Bangladesh’s offshore area remained unexplored despite it had settled its dispute with neighbouring Myanmar and India over the maritime boundary almost eight years ago.
It has had no success in exploration of oil and gas in its offshore areas located within its maritime boundary, said an energy expert wishing not to be named.
Illegal sand extraction: 100 acres of land dissolve into Nabganga river
About 100 acres of cultivable land in Hasla area of Babla-Hasla union of Kalia upazila of Narail has been swallowed by the Nabaganga river due to illegal sand extraction by dredger, according to locals.
Many houses and crop lands in Hasla and Patkelbari villages have been destroyed.
This year, 13 pucca and semi-pucca houses of nine families have been damaged, two brickfields and more than 300 trees have been washed away by the river, officials said.
Three brickfields and five houses are under threat.
Read Extraction of local coal for power generation not feasible: Nasrul Hamid
On October 1, the locals protested demanding a halt in sand mining and asking for a permanent protection of the river bank, but it did not stop the illegal extractors.
It has been learned that three-hundred-year-old Shuktagram Bazar, Shuktagram Kumar and Char Para, Hasla, Chanderchar, Patkelbari and Kanchanpur villages of Babla-Hasla union of Kalia upazila get affected by river erosion every year for over three decades.
So far more than one and a half hundred shops and houses, a great number of trees, and three hundred acres of cropland went into the river. Educational institutions, mosques-madrasas-cemeteries, temples and embankments, all kinds of infrastructures and establishments were affected. This monsoon, about 15 acres of cropland has gone under the river.
Read Fight the Flood: Safety measures to take before, during, after floods in Bangladesh
In spite of this situation, the sand island of Bri-Hasla mouza of this union has been leased to Twaki Sardar of Diadanga village of Purulia union for one year at a cost of Tk 88 lakh by the local administration.
Mosharraf Hossain of Hasla village said, "Though the lease-taker was supposed to dredge from the 9-acre area of the sand island in Bri-Hasla mouza, he is extracting sand day and night over 150 acres outside the specified area."
Earlier, 35 trawlers and dredgers were used but now they are using about 15 dredgers. Local UP chairman Mozammel Hossain Pikul protested but nothing changed. I have organised a human chain with hundreds of people in the area and also lodged complaints with the OC of Kalia Police Station, Upazila Nirbahi Officer and Deputy Commissioner but no one has taken any action in this regard, said Mosharraf.
Read: Teesta turns turbulent in Kurigram; leaves 100 families homeless
Hasi Begum of Hasla village said, sand is being dredged in front of my home. One of my houses went into the river a month ago. I am now shifting the big house. Twelve houses including those of Jafrul Mollah, Jomat Sikder and Jabed Khan have been devoured by the river. Besides, the houses of Shamsur Rahman and Tanjila and others are facing demolition. Now many are breaking the houses and shifting themselves.
Belayet Hossain, a member of the union, said crop lands and two brickfields in Patkelbari area adjacent to Hasla Mouza have been washed away by the river. Three more brick kilns and many crop lands are in danger.
Sand contractor Twaki Sardar could not be reached despite several attempts by this correspondent.
However, the lessee Md Mosharraf said sand was not being excavated outside certain sand islands.
Read Sunamganj losing land fertility for topsoil extraction
He admitted that some lands and houses were damaged. He said, it is true that some crop lands and houses have been affected by erosion.
However, if sand islands are not excavated normal flow of water will be hindered resulting in erosion of the river banks in different places, he said.
Kalia Upazila Nirbahi Officer (UNO) Ariful Islam said, after receiving the complaint, he directed the Assistant Commissioner (Land) to investigate it.
He said legal action will be taken after receiving the written report.
Read Illegal sand extraction continues in Kurigram
Fuel price hike a fresh blow to Covid-hit economy: Experts
The price hike of fuel oils is going to hit the country’s four major sectors in addition to casting a negative impact on the living cost as the prices of essentials are already in an unchartered territory, experts said.
They said the announcement of the price hike of diesel and kerosene has sparked off tensions in four sectors -- power, transport, agriculture and industry -- as diesel is the main fuel especially in transport, agriculture and industries, while power sector largely depends on it.
Mustafizur Rahman, a Distinguished Fellow at the Center for Policy Dialogue (CPD), Mohammad Ali Khokon, President of Bangladesh Textile Mills Association (BTMA) and Energy experts and professor of Bangladesh University of Engineering and Technology (BUET) Dr Ijaz Hossain came up with the apprehension while talking to UNB.
They said agriculture, transport, industry and power are four big sectors of the country and the sectors are still trying to recover from the depths of the pandemic fallouts. It is a fresh blow to the economy, they said.
According to official sources, the country consumes 60-65 lakh tons of fuel oil every year and 40-45 lakh tons that is diesel.
Also read: Strike to continue as transporters’ meeting with minister ends ‘inconclusively’
As per the new announcement, the prices of diesel and kerosene have been raised by Tk 15 per litre to Tk 80. The energy sector has already been reeling under a gas crisis and the sudden rise in diesel and kerosene prices will aggravate the situation.
The economists also believe that the rise in diesel and kerosene prices is also going to increase the overall cost of living in the country, adding to the woes of the poor people and also the middle class.
According to them, the continuation of this price increase will destabilize the food and service sectors, especially the sectors where the use of such fuel products is high. The common people will suffer most as it is going to have a big impact on other sectors besides transport.
Also read: Day 2 of bus strike: Commuters' pain is auto drivers' gain
CPD Special Fellow Prof Mustafizur Rahman said the rise in diesel-kerosene prices would affect all the sectors, including transport, agriculture and electricity. The economy is under the pressure of inflation and the rise in fuel oil prices will have a negative impact on all levels, starting from the consumer to the producer, he feared.
Mustafizur Rahman, however, said if the price is not increased it is again putting pressure on the government as it has to provide subsidies.
He said the kerosene price could be brought down since it is used by low-income people.
Prof Mustafiz suggested allowing the private sector to import diesel which will help create a competition in the market to reduce the price as well as break the monopoly of Bangladesh Petroleum Corporation (BPC). The price could be reduced a bit, especially if a long-term agreement is reached, there is an opportunity to import fuel oil at a lower rate.
According to energy experts, at least 35 lakh tons of fuel oil is used every year on roads, railways and ships in the country. Of this, 25.74 lakh tons of diesel is used. Diesel accounts for 72.79 per cent of the fuel used in the transports.
Agriculture mostly depends on diesel for fuel oil as it accounts for 99.73 percent of the total fuel oil used in this sector. The rising fuel prices will further increase farmers' irrigation costs, according to sector insiders.
If the cost of irrigation increases further, the farmers will not be able to raise the production costs, they said.
The number of diesel-powered irrigators used in the agricultural sector in the country is about 16 lakh. Huge diesel is used every year as fuel to operate deep-shallow tube-wells, LLPs, power tillers and tractors.
In the 2020-21 financial year, the demand for fuel oil for agricultural machinery was estimated at 19.39 lakh tons by the BPC. The annual consumption of fuel oil in the industrial sector was 4.21 lakh tons. Of this, diesel was 3.41 tons or 80.98 per cent.
Entrepreneurs in the sector say that if electricity is generated from diesel, the cost of production in factories will increase. As such, the rise in the price of fuel oil is going to have a big impact on this sector as well.
In this regard, Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon told the UNB correspondent that the price of fuel oil has gone up in the world market.
“Those of us who run factories with diesel-powered generators will have higher production costs,” he said.
Prof Ijaz said the diesel price hike by Tk 15 per litre will affect the economy as a whole. The government could have increased the diesel price step by step, he said, adding that the transport sector has already been affected and it will also help raise the prices of essential commodities. “Such price hike gives an indication of raising power tariff,” he added.
Generation growing up with digital addiction since childhood
Children’s addiction to digital devices, particularly smartphones, is now a growing problem for the development of their mental and physical health, according to experts.
Some children even cannot be fed without letting them watch smartphone contents in many cases in Bangladesh. The children are losing their social life due to excessive addiction to smartphones, they said.
Sumaiya Khatun, mother of two children, said rearing children is now a challenge for her as both of her children are addicted to smartphones.
Read Social Media Addiction: How to detach yourself from the cycle
"My son who is four years old is desperate for digital devices. He is used to watching internet content. He can’t think of his time without the smartphone. This is now a lifestyle for him as he always keeps the phone with him to watch cartoons and other porgrammes," she said.
She also said that her two-year-old daughter is also interested in internet content like his brother. "We have tried a lot to get them out of this habit. We provide them with smartphones as it is not possible to stay with them all the time. But it looks odd for us as they always stay with smartphones," she added.
Sumaiya said their concentration on smartphones is a matter of tension for us as they may browse different websites or content which is not appropriate to their age.
Read Are You Shopaholic? How to Stop Your Online Shopping Addiction?
Another working parent shared his concern over the issue as their seven-year-old girl, who is studying in class one, cannot think of a moment without looking at her phone.
The father of the Girl Faisal Hasan who is working as the Senior Information Officer in the Press Information Department posted in Dhaka while a private job holder Mother along with her daughter lives in Chattogram.
"We are really concerned about her mental and physical health and social grooming as she spent most of her leisure time watching online content. We allow it as we are busy with our job," the father of the daughter told UNB.
Read Quit Smoking: How to prevent Nicotine addiction
He also said that they did not find any alternative to allowing her to spend time on smartphones.
"But it seems a dangerous thing for her creativity and proper social grooming. She now prefers watching online content to playing with other friends. The pandemic makes the situation worse than usual," he added.
“Now the digital addiction is the key barrier to children's proper social grooming,” said a businessman Abul Hossain.
Also read: Effects of Video Game: Benefits, and risks of too much gaming
Founding President of Dhaka University IT Society and writer Abdullah Al Imran said that today's children are the future. But internet addiction
is destroying their future. The addiction is even more intense when children have been immersed in online content since childhood.
Dublar Char comes alive as Sutki fish season gets underway
With the start of the season of Sutki fish (dried) thousands of fishermen have spanned out across the Bay of Bengal around the Sundarbans forest with boats and nets to catch fish.
Workers and traders are already buzzing about Dublar Char, known as the Sutki Palli or Dried Fish Village after the authorities issued permits to fishermen to catch fish, bring them on Dublar Char and process them into dried fish, a delicacy in Bangladesh.
Similar hectic activities are also being reported from 13 other small islands where live fish is processed into dried one. Starting from November 1 the season will last until March 31.
Read Also: Sundarbans fishermen remain a neglected lot
Dublarchar in the Sundarbans, a mangrove, is known as ‘Shutki Polli’ as every year, fishermen and people related to dried fish business throng in the area for catching fish and processing.
There are fishermen who make the catch and sell it to the dried fish traders. The traders employ workers, many of them allegedly underage, to process the fish into Sutki and supply it to the markets mainly in Chattogram, where it is especially popular.
Thousands of fishing families, workers and traders depend on this growing economic sector of Bangladesh.
Read Also: Cox’s Bazar to get dried fish-processing industry; Tk 199-cr project okayed
Different kinds of fish such as Loitta (bombay duck), Churi (knief fish) shrimp, pomfret, poa will be dried up and make ready for the market.
As many as 15,000 fishermen and traders (mohajon) gather at Dublarchar, Meher Ali char, Alorkol, Office Killa, Majherkilla, Shelar Char, Narikelbaria, Choto Ambaria, Boro ambaria, Manikkhali, Kabarkhali, Chaprakhali, Kokilmoni and Haldakhali chars every year. They live in makeshift huts on the islands for the entire season.
Bangladesh ‘braces for Covid’s winter wave’; experts urge caution
Though the Covid-19 pandemic looks to have eased in Bangladesh with an insignificant infection rate for the past several weeks, experts warn that a fresh mild wave of Covid-19 may hit the country during this winter.
Since the virus still remains in some pockets of the country, they said it is likely to spread fast amid the presence of different flues with the fall of mercury next month due to public apathy to wear masks and health safety rules, low pace in vaccination and lack of human intervention and necessary bulwarks.
The analysts also said Prime Minister Sheikh Hasina rightly rang the alarm bell last week as the virus cases are surging again in many countries and neighbouring India’s West Bengal.
Read Bangladesh bracing for third Covid wave?
They, however, said Bangladesh can avoid the possible winter wave by intensifying the virus control measures, including strict screening at air and land ports, encouraging people to maintain health safety rules, and wear masks and strengthening the vaccination drive.
On October 28, Prime Minister Sheikh Hasina urged all to maintain health protocols like wearing masks to check the resurgence of Coronavirus in the upcoming winter as the virus hits many countries, including the USA, England and some European countries, at this time.
Current Covid situation
Bangladesh reported 256 Covid cases on Wednesday with 1.31 percent passivity rate. The fresh cases were detected after testing 19,523 samples, said the Directorate General of Health Services (DGHS).
Read: Bangladesh logs another 7 Covid-linked deaths, 247 fresh infections
Though Covid infection rate crossed 30 percent in July this year and it continued falling from mid-August. The virus came down to below five percent on September 21 while it declined to below 3 percent on October 3 and below two percent on October 22.
Cox’s Bazar airport expansion: Officials hope to get direct international flights by 2023
As the work on the expansion of Cox's Bazar Airport runway gains momentum, officials involved with the project hope to get it ready for direct international flights by 2023, almost a year before the schedule.
“The runway expansion work is going on really fast,” director of the project Yunus Bhuiyan told UNB in a recent interview.
“Although the project is scheduled to be completed in May 2024, our target is to complete the work by November 2023,” he said.
Read World-class third terminal of Dhaka Airport to be visible by Dec: CAAB
Chairman of the Civil Aviation Authority Air Vice Marshal M Mofidur Rahman said that Cox's Bazar will have an international standard airport once the runway expansion work is completed.
He said Cox's Bazar airport is going to find a place in the list of world's most beautiful airports. Tourists from different parts of the world can come directly to the tourist centres of the region.
“Pretty soon it would turn into an international airport. New generation Boeing 777-300 ER, B-747, Airbus and other big planes will be able to take off at this airport. This would create a regional aviation hub at the airport,” he noted.
Read PM inaugurates work on Cox's Bazar Airport’s runway upgradation
The runway will be expanded to 10,700 feet to become the longest runway in Bangladesh after the expansion project is completed. And 1,300 feet of the runway will run into the sea.
As part of the renovation the authorities have already completed construction of a new terminal building, increased supply of power, installation of airfield ground lighting system and other works
Sea sand filling work is underway near Sonadia Island in Maheshkhali, work on the terminal building inside the airport is nearly completed. Infrastructure and casting work on the terminal building has already been completed; finishing works will be done soon. Besides, the old terminal building is being repaired.
Read Cox's Bazar Airport set to get a spectacular maritime runway
EU to remain “steadfast partner” of Bangladesh on Rohingya front: Envoy
Head of Delegation of the European Union (EU) to Bangladesh Ambassador Charles Whiteley has said they will continue to be a “steadfast partner” of Bangladesh in meeting the needs of the Rohingya and the host community with continued pressure on Myanmar for their safe return to their place of origin in Rakhine State.
“Clearly, I think, the majority of the Rohingya do want to go back to home,” he told UNB in an interview mentioning that everyone, including the government of Bangladesh, underlined that any return has to be “voluntary and safe” for the refugees.
Responding to a question on the EU's business link with Myanmar, the EU envoy said they are very careful when it comes to the economy as some people say why the EU does not suspend the Everything But Arms (EBA) scheme.
Read: ‘Sky is the limit’, says new EU envoy eyeing dynamic relations with Bangladesh
Myanmar has been a member of the World Trade Organization (WTO) since 1995 and, as a least developed country, benefits from the EBA scheme, which grants unilateral duty- and quota-free access for all exports, except arms and ammunition, to the EU.
Social entrepreneurs give rural Bangladesh access to retail banking
Where brick and mortar banks face a tough time reaching customers, agency banking provides the answer -- by delivering the last-mile financial services to the unbanked.
The unique concept has spurred a revolution in retail banking in several underdeveloped and developing countries the world over, creating social entrepreneurs who drive change.
This is also a win-win for all. Agency or "branchless" banking allows banks to expand their geographical presence in a cost-effective way, while customers gain from access to regulated financial institutions and agents benefit financially.
Read: Citigroup to exit retail banking in India
In Bangladesh, the role of agency banking got magnified during the pandemic and the consequent lockdown. All the stakeholders -- the banks, their agents and the underserved population benefitted from doorstep banking.
"Through us, a number of people in the villages now deposit their savings in banks rather than local NGOs," said Md Firoze, an agent based in Tangail's Mirzapur.
In fact, banks benefit from customers' money as the funds they lend come from deposits. And agency banking fuelled the growth of many banks in the past two years, according to figures available with UNB.
Read Nine public sector banks hold 27 percent assets, deposits in banking sector
"During the first wave of Covid-19 last year, I disbursed over Tk 67 crore inward remittances to beneficiaries in Mirzapur through the outlet of a private sector bank," he said, adding that adhering to all bank rules "is the biggest challenge".
While access to financial resources during the Covid-induced lockdown gave several families the ability to absorb the shock, many banks literally thrived and witnessed substantial growth even during the world's greatest crisis.
Seaweed farming can transform Bangladesh’s blue economy: Experts
Seaweed farming holds enormous prospect for Bangladesh to expand its blue economy as the marine plants and algae have multipurpose applications in industries like food, cosmetics, pharmaceuticals and fertilizer in local and global markets, according to experts in this field.
To promote seaweed farming commercially, the country needs to develop its market value chain which is missing yet, they said.
This world’s fast-growing sector still remains almost unexplored in Bangladesh despite having a large sea area in the Bay of Bengal following the disposal of maritime disputes with two neighbouring countries –Myanmar and India, said the experts.
Read Be the flag-bearer of Bangladesh's blue economy, President tells Navy
“Bangladesh can produce seaweed commercially alongside the fisheries and other marine resources in a bid to unlock the full potential of the blue economy,” said Dr Md Kawser Ahmed, Professor of Oceanography Department at Dhaka University.
He said the contribution of seaweed is enormous not only to the economy but also to the environment and ecology.
Read: Bangladesh's Blue Economy Cell falters; no progress in 4 yrs