Offshore PSCs await CA's approval
Tuesday, 23 September 2008

Chief adviser Fakhruddin AhmedThe deals for offshore oil and gas exploration with two international firms await approval of chief adviser Fakhruddin Ahmed, CA's special assistant M Tamim said on Monday, reports bdnews24.com.

M Tamim, who oversees power, energy and mineral resources ministry, said a summary on the deals would be sent to the chief adviser once he returned home from New York.
 
The CA, who is in charge of the ministry, is in New York to attend the general assembly of the United Nations.
 
Tamim hoped the agreements with US-based Conoco-Phillips and Tullow Bangladesh Limited (Bangladesh) would be signed as per the planned timeframe.
 
The cabinet committee on public procurement had earlier asked the concerned ministry to take a decision regarding the deals.
 
Conoco-Phillips bid for deep sea blocks No 10, 11, 12, 15, 16, 17, 20 and 21.
 
Tullow Bangladesh Ltd has been recommended for block No 5.
 
The government launched the international bidding on Feb 15 for 28 offshore blocks, and Petrobangla opened the bid documents on May 7 to complete evaluation of the proposals in three weeks for a final decision.
 
Seven international companies took part in the bidding.
 
The Houston-based Conoco-Phillips, Australia's Santos International, Longwoods Resources (a US-China joint venture), Korea International Oil Corporation, China National Offshore Oil Corp, known as CNOOC, Comtrack Services and Tullow were among the players that joined the bidding.
 
Petrobangla received 22 bids for 15 blocks out of 28 blocks.
 
In line with the Model Production and Sharing Contract approved by the cabinet on Feb 5, the government would sign four-year exploration deal for shallow sea blocks and five-year for deep sea blocks.
 
The deals might be extended by four more years.
 
After submission of development plans, 25-year agreement would be signed for gas fields and 20-year deal for oil fields.
 
The companies will pay compensation in case any accident takes place due to carelessness and inefficiency.
 
If any company wants to sell more 50 percent of its shares, it will have to take permission from the government.
 
The companies would be allowed only to export Liquefied Natural Gas by taking permission from Petrobangla. They can export oil only after meeting the domestic demand.

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