Government Policy

Petrobangla, Daewoo sign deal for deep sea gas exploration

DHAKA, March 14, 2017 (BSS) - The state-owned energy company Petrobangla-today signed a deal with South Korea's Posco Daewoo Corporation for exploration of gas and oil on 12 block in the deep sea.

Deputy Secretary of Energy and Mineral Resources Division Khadiza Nazneen, Secretary of Petrobangla Syed Ashfaquzzaman and Vice President of Daewoo Se Bo Jo signed the production sharing contract (PSC) on behalf of their respective sides at Petrobangla office here.

Prime Minister's Power, Energy and Mineral Resources Adviser Dr Tawfiq-e-Elahi Chowdhury, Bir Bikram, witnessed the signing ceremony as the chief guest, while State Minister for Power, Energy and Mineral Resources Nasrul Hamid present as the special guest.

Dr Tawfiq-e-Elahi Chowdhury urged Daewoo to complete the exploration work within shortest time, adding, "We have given importance for four topics including survey, exploration, well digging and LNG import aimed at ensuring energy security."

Nasrul Hamid said the government is importing LNG and increasing LPG for saving natural gas and supplying it to industries.

"Out of the 15 blocks, exploration of gas and oil is being started from one block and initiative would be taken to search gas and oil rest of the blocks," he said.

According to the contract, the international oil company (IOC) would explore gas and oil from 1,000 to 2,000 metres in the deep sea of the Bay of Bengal and sell gas and oil at competitive prices with profit from 65 percent to 90 percent in oil and 85 percent from 60 percent in gas.

The duration of the agreement would be five years in primary level, but the contract would be flexible for increasing its period to three years more.

Among others, Chairman of Parliamentary Standing Committee Tajul Islam, secretary of Energy and Mineral Resources Division M Nazimuddin Chowdhury, Chairman of Petrobangla Abul Mansur M Faizullah, South Korean Ambassador in Dhaka Ahn Seong-doo and Chief Executive of Daewoo Kim Young-Sang were present at the ceremony.

The government has signed the agreement for exploration of the gas and oil from the deep sea after wining of the maritime boundary from Myanmar and India.

Source: Bangladesh Sangbad Sangstha (BSS)