With Finance Minister AHM Mustafa Kamal in the chair, the committee gave nod to the “Draft Onshore Model PSC, 2019” and “Draft Offshore Model PSC, 2019” setting new price offer for international oil companies (IOCs).
After the meeting, the Finance Minister said $7.25 per thousand cubic feet (mcf) of gas was offered for the IOCs for exploration in the offshore areas while $6.50 was offered for the onshore areas.
He said that earlier the government had invited tender for IOCs for offshore areas. But IOCs were not interested to come into Bangladesh due to decline of price of oil and gas in the global market.
- we hope IOCs will be interested with new price offer and also upward trend in price of oil and gas,” he said.
Sources said that after settlement of the disputes with neighbouring Myanmar and India, Bangladesh’s total number of gas blocks stood at 48. Of these, there are 22 onshore blocks and 26 offshore blocks. Of these offshore blocks, 11 are shallow blocks while remaining 15 are deep sea blocks.
But so far, Bangladesh made no major breakthrough in offshore gas exploration after settlement of maritime boundary disputes with Myanmar in March 2012 and with India in July 2014. So far it could only award four offshore blocks out of total 26. According to media reports, Myanmar so far awarded 26 blocks in its maritime area.
Officials said the Energy Ministry mainly concentrated on import of LNG to meet its demand in last few years.
Officials said that in the four awarded offshore blocks, the shallow blocks SS-11, SS-04, SS-09 were awarded in 2014 bidding round while the only deep sea block DS-12 was awarded in 2017 under a special initiative.
Indian joint venture company ONGC Videsh-Oil India obtained the shallow blocks SS-04 and SS-09 while Santos-Kris Energy JV got the block SS-11. The only deep sea block was awarded to South Korean Posco-Daewoo Corporation in 2017 through inviting expression of interest (EOI).