2024-09-21 00:45:32
Petrobangla has extended the tender submission period by three months to make offshore oil and gas exploration auctions more competitive. Energy experts feel that some more companies should be pulled into the auction by relaxing the conditions.
Bangladesh’s maritime boundary disputes with India were settled in 2012 and with Myanmar in 2014. After this, the neighboring countries started extracting gas in the two seas. This time Bangladesh is also going to walk on the same path.
Petrobangla invited 55 foreign companies for oil and gas exploration. Out of this, seven foreign companies have bought tenders in the first phase of the auction so far.
The daily gas demand in the country is now 4 billion cubic feet. Against this, the supply is 2.7 billion cubic feet. Of this, locally produced gas is 210 cubic feet and imported LNG is 600 million cubic feet. However, by 2030, surface gas extraction may drop below 1.8 billion cubic feet. Another 20 million cubic feet of gas can be found in the shallow sea. Then 60% of the demand of about 5 billion cubic feet will have to be met by importing LNG.
Taking these things into consideration, Petrobangla has invited open tenders for oil and gas exploration in deep and shallow seas. Later, the time for procurement and submission of tender documents, data and information was pushed back by three months to December 9.
Energy experts say it is important to start exploring the sea quickly to meet the demand for gas. They have also suggested reforms in several clauses of production-partnership agreement to protect the country’s interests.
Experts say, the sooner we can get gas extraction in our country, the better. If we can provide even 1 million cubic feet of gas in our own country, then we don’t need to import that much. If imports are reduced, the pressure on the foreign exchange will also be reduced.
In this case, they think that the competitive process of offshore bidding which has started, should be taken forward.
Energy expert Shamsul Alam said, the profit we will get will be in cash and not in gas. We have objections at this point. Whether they pay lower corporate taxes or not, their share of gas prices should drop. The cost recovery clauses should be amended.