Business
Chevron inks deals to dig more wells at expanded Bibiyana gas field
Chevron Bangladesh has signed several agreements with the Energy and Mineral Resources Division and also with state-owned Petrobangla to drill more wells at the expanded Bibiyana gas field.
The deals are Supplemental Agreement to the Block 12 Production Sharing Contract for Bibiyana Flank Area Extension, amendment of Jalalabad Gas and Condensate Purchase and Sales Agreement and Amendment of Moulvibazar Condensate Purchase and Sales Agreement for Block 13 and 14.
Energy and Mineral Resources Division Deputy Secretary Morsheda Ferdous, Petrobangla Secretary (Senior General Manager) Ruchira Islam, and Chevron, Bangladesh President Eric M Walker signed the agreements at a city hotel Sunday.
Petrobangla Chairman Nazmul Ahsan said the main objective of Chevron's Bibiyana Flank Area Extension is to drill new wells there.
So far, Chevron has dug 26 wells at the Bibiyana gas field. It will begin drilling the BY-27 development well in 2023 in the extended area.
The multinational energy corporation also plans to drill the BY-28 infield well later, Nazmul said, adding that a significant amount of gas is expected to flow from the field.
Chevron is now producing around 1481.3 million cubic feet of gas per day from three gas fields – Bibiyana, Jalalabad and Moulvibazar – about 60 percent of the country's total gas production. It has also been producing more than 80 percent of the total condensate production.
Earlier, the government approved Chevron's proposal to allow it to add a 60-square-kilometre "flank" area outside its existing contract zone in the north of the Bibiyana gas field.
The approval came last month when the US oil giant celebrated its 25 years of operations in Bangladesh.
The newly extended area will be drilled under the same production sharing contract now applicable for the three gas fields, said the Energy and Mineral Resources Division officials.
Exports decline in September: EPB
Bangladesh’s export income fell by 6.25 percent in September after a positive growth during the last 13 months, according to official figures.
The Export Promotion Bureau (EPB) released updated statistics on export earnings on Sunday.
It said exports of agricultural products, frozen food, handicrafts, bicycles, and furniture decreased in the first three months of the current fiscal year.
Bangladesh exported goods worth $3.9 billion last month (September), which is 6.25 percent less than the same period last year, the EPB data revealed.
However, overall the exports in the first three months of the current financial year 2022-23 are in a positive trend and saw a growth of 13.38 percent.
During this period, products worth $12.49 billion were exported in the first three months of current fiscal year that was worth $11.02 billion.
Read: Bangladesh to stay safe, sustainable apparel sourcing destination: BGMEA
Overall exports declined last month mainly due to a decline in apparel exports. The export of readymade garments was worth $3.16 billion in the previous month, which is 7.52 percent lower than in September last year. Exporting of both woven and knit garments declined last month.
However, there is a 13.41 percent growth in apparel exports in the first three months of the current financial year.
Exporters of readymade garments have said that inflation in the USA and EU countries has become dire due to the Russia-Ukraine war. People there have cut back on purchases other than fuel for cars and groceries.
Because of that, foreign buyers are placing less orders for two to three months. Many companies were not allowing the shipment even after the products of the purchase order were ready, they said.
BGMEA Director Md. Mohiuddin Rubel said on Sunday that BGMEA had already shared early indication of growth slowdown from September onwards, which is apparently reflected in export data for September.
The global retail market is disrupted by many challenges starting from post covid container freight and supply chain crisis, price hike of raw materials, and then anticipated recession in the global economy, which is halting retail sales and demand for clothing, he said.
Rubel said buyers were following cautious steps to make their inventory and supply chain optimum, so some of them are even holding back production and orders.
“Altogether it has been quite a fluid and vulnerable situation, where we have all the strengths and possibilities to grow given our sustainability and competitiveness strides, yet the global economic outlook makes it difficult to foresee something bright for the final quarter of the year 2022,” he added.
New price of 12kg LPG, declines by Tk 35 to Tk 1200
Price of liquified petroleum gas (LPG) has declined by Tk 2.91 per kg as the Bangladesh Energy Regulatory Commission (BERC) on Sunday announced the new value of the petroleum gas for the month of October.
As per the new price, a retail consumer will get a 12-kg LPG cylinder at Tk 1200 instead of previous price of Tk 1,235.
The prices of LPG for other sizes of cylinders from 5.5 kg to 45 kg will come down rationally, said BERC chairman Abdul Jalil, who announced the new price at a virtual press briefing on Sunday.
As per the announcement, the price of auto gas (LPG used for motor vehicles) was reduced to 55.92 per litre from previous price of Tk 57.55 per litre, down by Tk 1.63 per litre.
The new price will be effective from 6 pm on Sunday (October 2).
Jalil informed that the US Dollar rate was considered at Tk 106.64 in refixing the price of the LPG as private operators import it from Middle East through foreign currency.
He said though the LPG price has substantially come down in the global market, consumers are not getting full advantage of the downward trend due to the high dollar price in the local market.
Last month, the dollar exchange rate was considered Tk104.02
The price of LPG, marketed by state-owned LP Gas Company, will remain as usual as it is locally produced with a market share of less than 5%.
The LPG price went up to the highest Tk1,439 (a 12kg cylinder) in the local market, following the start of the Russia-Ukraine war in February this year.
The LPG price was the lowest at Tk1,225 for a 12kg cylinder in January this year and it witnessed continuous hikes in February, March and April.
Tk 2829 crore: What capital market investors lost in a week
Capital market investors in Bangladesh suffered losses amounting to Tk2829.94 crore last week (Sep 25-29), according to the weekly market transactions.
Of the total five working days, the market saw three days of decline and two days of rises in the index.
Both trades and indexes were during the week. Share prices of most of the traded companies also fell. As a result, the market capital of investors has decreased by Tk2829 crores.
Read: Shakib’s company involved in share manipulation, DSE investigation finds
Shares and units of 386 companies were traded in Dhaka Stock Exchange (DSE), the main capital market of the country. Of them, 61 companies' share prices increased, 173 decreased, and 152 were unchanged.
The DSE index fell by 51 points to 6,512 points in the week as the share prices of most companies fell. Among the other two indexes of DSE and DSES (Bangladesh Dhaka Stock Exchange Broad Index (DSEX) including value, chart, profile and other market data ) decreased by 17 points to 1419 points and the DS-30 index decreased by 35 points to 2330 points compared to the previous week.
Bangladesh Market capitalization (capital) decreased by Tk 2829.94 crore in the week due to a decrease in index and price. But in the previous week, the capital had increased by Tk2617.42 crore.
Read Strengthened capital market to drive growth: Finance Minister
The market capital of Bangladesh at the beginning of the week was Tk 522763.99 crore. After trading on Thursday, the last working day of the week, the capital stood at Tk 519 914.04 crore. The capital decreased by 54 percent.
The main DSE index fell by 51 points to 6,512 points in the outgoing week as the share prices of most companies fell. Among the other two indices of DSE, the DSES index decreased by 17 points to 1 419 points and DS-30 index decreased by 35 points to 2330 points compared to the previous week.
Shakib’s signature S#75 color coming soon on OPPO F21s Pro
Allrounder Shakib Al Hasan has launched his signature S#75 color only available on OPPO F21s Pro which will be released in market on October5.
S#75 color combination is an embodiment of Shakib’s personality traits. The color mélange S#75 by Shakib Al Hasan tells the story of a man who not only talk the walk, but also walk the talk.
Each color of the S#75 represents a typical moment that inspires Shakib - the shade of green from the training ground, the shade of gold from the trophy, the shade of pink from the love of his fans, all of which together form a complete his story.
Read Shakib Al Hasan shines in Caribbean Premier League
The color combination in the OPPO F21s Pro was brought to life using OPPO’s signature OPPO Glow Design technology – the brand’s own specialized production method that renovates a piece of ordinary glass to the glossy back case.
Shakib Al Hasan said, “Different people have different way of getting inspired. This new design of the OPPO F21s Pro recognizes that difference and will inspire the smartphone users in Bangladesh to explore the multiverse of possibilities within them.”
Damon Yang, Managing Director of OPPO Bangladesh Exclusive Distributor, said, “Shakib Al Hasan is an inspiration to the people of Bangladesh, because of his multiverse of cricketing talents. Just like Shakib, OPPO believes that people need something that will inspire them and help them customize their inspiration so that they can achieve their dreams”.
Read Oppo A57 Review: Key specs, pros and cons
Eggs, meat can be sold at lower prices if govt provides policy support: FBCCI
Leaders of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) today said that eggs and meat can be provided at lower prices if the government extends policy support.
The apex trade body leaders said, “Entrepreneurs demand policy support to the livestock, poultry and fish farmers like the agriculture sector enjoys.”
The demand came in the first meeting of the FBCCI Standing Committee on Livestock, Poultry and Fisheries, held in the federation building in Dhaka on Saturday.
“Poultry, cattle farms, fish and shrimp farms have to pay electricity bills at commercial rates pushing up the production and operating costs. With policy support equal to the agricultural sector, it will be possible to meet the protein needs at affordable prices,” they pointed out.
Speaking as the chief guest, FBCCI President Md. Jashim Uddin said the government should provide utilities at a special rate to livestock farms.
DCCI underscores promotional campaigns in Turkiye to attract FDI
Bangladesh needs promotional campaigns in Turkiye to attract FDI (foreign direct investment), said Dhaka Chamber of Commerce and Industries (DCCI) President Rizwan Rahman.
An 86-member business delegation of the Dhaka Chamber led by its president attended a forum on “Exploring trade and investment opportunities between Bangladesh and Turkiye” in Istanbul organized by Foreign Economic Relations Board of Turkiye (DEIK) on Thursday, according to a press release.
Rizwan said Bangladesh is ready to take Turkish investment right at this moment.
It needs to be figured out if there are any tariff and non-tariff barriers in terms of exporting to Turkiye, he added.
He also stressed on knowledge transfer and technology transfer, research and knowledge sharing.
He invited Turkish carpet makers to import quality jute from Bangladesh. He further termed RMG value chain, automotive, leather and footwear, pharmaceutical, plastic and infrastructure as the potential sectors for Turkish entrepreneurs in Bangladesh.
Mentioning that export grew by 34.38% till June 2022 despite Covid situation, he said that Bangladesh has a good demographic dividend. The total working age people is 65% in Bangladesh.
The Turkiye-Bangladesh Business Council was established in 2011 and the Bangladesh-Turkiye Business Forum was established in 2022. Moreover both the countries are member states of D8 and OIC.
He also suggested forming a joint economic commission with an active participation of the private sector.
During the meeting Chairman of DEIK/Turkiye-Bangladesh Business Council Onur Ozden said Turkish entrepreneurs are already in operation in Bangladesh and the others are very keen to explore these possibilities further. But the bilateral trade between these two countries should be increased and for that exchange of such business delegations would be the best option.
Ambassador of Turkiye in Bangladesh Mostafa Osman Turan said Bangladesh is giving different fiscal and non-fiscal incentives to the foreign investors. B2B in that case plays a vital role for enhancing trade and investment. He also said that at present bilateral trade has crossed USD1.3 billion and it has a potential to grow more.
Bangladesh’s market is a large market and Turkish investors may explore this opportunity. Infrastructure development, policy reforms and ease of business registration process will attract Turkish investors in Bangladesh, he added.
Ambassador of Bangladesh in Ankara Mosud Mannan said private sectors of both the countries need to play a catalytic role.
Despite there being a language barrier between the two countries but still it can be overcome, he added.
Bangladesh government will establish 100 economic zones with different lucrative packages and that will foster foreign investors to come and invest in Bangladesh, hoped Mosud.
More than 110 companies invited by DEIK joined for an interactive B2B session with the DCCI business delegation members after the business forum.
At the end, a memorandum of understanding was signed between Dhaka Chamber of Commerce & Industry and Istanbul Gedik University. DCCI President Rizwan Rahman and President, Board of Trustees, Istanbul Gedik University Hulya Gedik signed the document on behalf of their respective organizations.
Mohammad Nore-Alam, Consul General of Bangladesh to Istanbul was also present during the meeting.
Ease of doing business: 5-year trade licence proposal gets commerce ministry nod
The commerce ministry has accepted the proposal of Business Initiative Leading Development (BUILD) for issuing trade licences for at least five years instead of one year to improve the ease of doing business.
The think-tank came up with the proposal at its ninth Trade and Investment Working Committee meeting in Dhaka Wednesday, according to a media statement.
Tapan Kanti Ghosh, senior secretary at the commerce ministry, and Md Saiful Islam, President of the Metropolitan Chamber of Commerce and Industry co-chaired the meeting.
Build CEO Ferdaus Ara Begum said they had studied the City Corporation Ideal Tax Schedule 2016 and Municipal Taxation Rules and found no legal bar for issuance of trade licences for five years.
Mohammed Nora Alam Siddique, joint secretary at the Local Government Division, said it could be implemented for municipalities and city corporations. "However, we need to review if union parishads can issue it under its present status."
Saiful called for introducing NID as the singular document for trade licence issuance following global practices.
Referring to Build's study "Improved Business Environment and Simplification of Company Registration Process, the think-tank's Chairperson Nihad Kabir suggested formulating a policy for availing certified copies from the Registrar of Joint Stock Companies and Firms.
The fill-up process of model articles of association (AoA) and memorandum of association (MoA) can be simplified to make the company registration process business-friendly, she added.
Bangladesh Bank raises repo rate to control inflation
Bangladesh Bank has increased the repo rate to 5.75 percent, from 5.5 percent, to control inflation.
The central bank took the decision at the 56th meeting of the Monetary Policy Committee (MPC) held on Thursday.
Amidst rising inflation in the world market, Bangladesh is also witnessing the same.
In order to control inflation, the committee raised the repo rate, which will be effective from October 2 (Sunday).
Also read: Bangladesh Bank cuts interest rate of loans under garment industries dev funds
The reverse repo rate will remain unchanged at the existing 4 percent, said a notification of the central bank.
The repo rate is the key monetary policy rate of interest at which the central bank lends money to banks in the short term, essentially to control credit availability, inflation, and economic growth.
The Bangladesh Bank notification stated that despite the economic recovery after Covid-19 fallout, the imbalance between global demand and supply still exists as supply chain problems caused by the ongoing Russia-Ukraine war have worsened.
Also read: Dollar crisis: Bangladesh Bank allows return of six banks' treasury chiefs
As a result, since the beginning of 2021, most commodity prices in the global market have surged.
The world’s top economy, the US, has also increased policy interest rate to control inflation. Global prominent economists have warned that a new recession is coming from the supply chain disruption erupted from the Russia-Ukraine war.
‘World investor week’ to be observed to raise awareness about investors’ protection
Bangladesh Securities and Exchange Commission (BSEC) will observe the 'World Investor Week' from October 3-13 for raising awareness about investors’ education and protection.
BSEC, as a member of IOSCO (The International Organization of Securities Commissions (IOSCO), an association of organizations that regulate the world's securities and futures market, will observe the week through befitting programs, said BSEC executive director and spokesperson Mohammad Rezaul Karim on Thursday.
The inaugural function of the week will be held at the BSEC Multipurpose Hall on October 3, 2022.
Bangladesh Bank’s Governor Abdur Rouf Talukder will be present as the chief guest at the opening ceremony.
Read: Takes 6-12 months to identify a share market manipulator in existing system: BSEC Chairman
Besides, Sheikh Mohammad Salim Ullah, Secretary of the Financial Institutions Division (FID), will be present as a special guest. BSEC Chairman Professor Shibli Rubayat Ul Islam will preside over the event.
The closing ceremony will be held at La Meridien Hotel in the capital.
The program will be organized by Central Depository Bangladesh Limited (CDBL) and Central Counterparty Bangladesh Limited (CCBL), both are concerns of BSEC.