Bangladesh gets tremendous responses from the international oil companies (IOCs) to participate in the bidding round for offshore hydrocarbon exploration in the Bay of Bengal.
"Seven reputed international companies purchased bid documents to participate in the bidding round for offshore hydrocarbon exploration in Bangladesh, we hope they will continue their engagement up to the final stages of this bidding round," State Minister for Power, Energy and Mineral Resources Nasrul Hamid told the reporters on Wednesday on the sidelines of the promotional seminar on "Bangladesh Offshore Bidding Round 2024" at a city hotel.
The companies which are participating in the bidding round and the seminar include Petronas, ExxonMobil, Chevron, Inpex Corporation, Jogmec of Japan, CNOOC, ENI Spa of Italy, Kris Energy, ONGC and TGS and Schlumberger.
Meanwhile, the State Minister Nasrul Hamid told the reporters that huge presence of international oil companies in the event proves that they have full confidence in the Bangladesh government.
We are very much confident about the success of the offshore bidding round as global oil majors are participating in it. Nowadays they know that Bangladeshs energy market is a big one and its growing fast.
Thats why the biggest companies are very encouraged to participate in the bidding round, the State Minister said.
To attract the IOCs we have updated the Model PSC and now working on updating the onshore PSCs.
Meanwhile, taking part in the discussion at the seminar, Prime Ministers Energy Advisor Dr Tawfiq-e-Elahi Chowdhury said, "Although there is instability prevailing at different places across the globe, South Asia, particularly the Bay of Bengal remains as the most peaceful area. There is no flash-point in this area," he remarked.
Tawfiq-e-Elahi Chowdhury said the model production sharing contract (PSC) was updated and redesigned with new features that will give more benefit and profit to the IOCs such as R-factor through which both the government and the IOCs will be sharing the profits in a rational manner.
He noted that a multi-client survey was conducted in the offshore areas which will provide data to the investors about prospects and potentiality of the gas blocks.
"This basin is much richer compared with other ones in the world. Prime Minister Sheikh Hasinas leadership has created a confidence for which we
e hopeful that this bidding round will be successful....So far we received a huge response," he said.
"Weve have been pursuing a middle way in attracting the investment so that both the investors and the owners can have a win-win situation," he added.
"If investors think of a long term investment, it will be less risky for them," Prime Ministers Energy Advisor Dr Tawfiq-e-Elahi Chowdhury said.
He urged international oil companies (IOCs) to invest in the countrys offshore areas for hydrocarbon exploration terming the Bay of Bengal as the most peaceful area in the region.
As there is a big market here, the investors will have no risk in their business, he told reporters.
He also turned down any possible impact of the Myanmar situation in this case regarding their investment.
Fifteen other international companies are participating in the seminar with their keen interest to invest in the offshore areas, said Nasrul.
He said the PSC has been updated in a modern way protecting both the interest of the country and the investors.
Nasrul noted that the bidding round will be concluded by September and the government has a target to award contracts shortly so that the investors can start their job by next year.
He also said as per the plan, from exploration to production, the whole process will take 7-8 years to complete the job in the offshore areas.
Petrobanglas general manager (exploration) Farhana Shaon made a presentation on the Bangladesh Offshore Bidding Round 2024".
With Energy Secretary Md Nurul Alam in the chair, the event was also addressed by Chairman of Parliamentary Standing Committee on Ministry of Power, Energy and Mineral Resources Ziaur Rahman, Petrobangla Chairman Zanendra Nath Sarker, Chevron Bangladesh president Eric M Walkerand UK-based energy company TGSs senior scientists Elizabeth Gilbard.
