In exploration of oil-gas at sea, Bangladesh is behind India and Myanmar. Reportedly, work is underway in three blocks of the existing twenty six. However, no multi-client survey is being carried out. Since multinational companies were not willing to carry out extraction and research, efforts were taken to carry out multi-client survey, but after three years in limbo, that is being regarded as unnecessary.
PM’s energy adviser, Toufique E Elahi Chowdhury, said: “if work is given by calling contract then the issue of survey is included in the Production Supply Contract, PSC.”
Therefore, multi-client survey is not essential, he added.
Energy division sources say that the main objective of the multi-client survey is to carry out a survey over a large area by a company before tender. The result of the survey will then be bought by a company selected in the tender process. The cost of the survey will be recovered from the company winning the tender.
In 2015, five tenders were submitted to carry out multi-client seismic surveys in the Bay of Bengal and later, a Norwegian company TGS was awarded the work.
But caught in bureaucratic red tape, that initiative is now being scrapped.
Within Bangladesh waters, only three blocks are operational while the remaining 23 are idle.
Energy specialist, Shamsul Alam, told Bangla Tribune: “Bangladesh is lagging behind Myanmar in exploring and implementing oil-gas projects.”
Instead of importing gas, emphasis has to be on exploration, headed.
On March last year, Petrobangla signed a PSC with Korean company Daewoo for exploration in block number 12, which is 189 km deep into the Bay of Bengal.
Meanwhile, Indian company, ONGC is exploring gas in block number 4 and 9.
Regarding new bidding, a Petrobangla official, said: “we have sent recommendations and after going through the procedure in the ministries of law and energy, it will be raised in cabinet for approval.”
After the resolution of maritime border dispute with Bangladesh, Myanmar is searching for gas within her border and declared gas reserves in Thalin-1 block in 2016. It’s believed this block has 4.5 trillion cubic feet of gas.
Previously, gas was extracted only from Sangu field in Bangladesh by British oil company, CAIRN Energy. Extraction of gas from Sangu began in 1998 and finished on 1 October, 2013.
After that, no research for oil-gas was carried out at sea. Former Petrobangla chairman, Hossain Monsur, said: “multi-client survey is essential because if a company expresses interest to search for oil and gas then they need to be given a chance to get an idea about possible natural resources.”
We are behind India and Myanamr in exploration at sea but it has to be admitted that the work is costly and therefore, foreign companies approach such work after much thought and deliberation, he added.
“We must take initiatives to attract foreign companies.”