Energy Bangla

The Cabinet Committee on Government Economic affairs on Wednesday approved a proposal of Petrobangla to award three deep-sea gas blocks to the US-based ConocoPhillips and Norway-based Statoil ASA for exploring oil and gas in the Bay of Bengal.
The approval was given at its regular meeting with the Finance Minister Abul Maal Abdul Muhith in the chair.
According to the proposal, the international oil companies (IOCs) would spend around $US69 million for each block on seismic survey covering around 776 square kilometres in the Bay.
The companies will then analyze the data and if found potential they would again invest around $US50 million for 2D, as per the Production Sharing Contract (PSC).
“Now we are set to award the US-based ConocoPhillips and the Norway-based Statoil ASA for exploring oil and gas in three deep-sea blocks in the Bay, known as offshore blocks 12, 16 and 21 within a month,” State Minister for Power, Energy and Mineral Resources Nasrul Hamid told.
The Prime Minister approved the draft Production Sharing Contract (PSC) last week of January. The Energy Ministry has sent the issue to Petrobangla for taking necessary steps.
Under the PSC, Petrobangla will purchase gas (if found) from these blocks at a rate of $US 6.5 per unit.
ConocoPhillips and Statoil would spend about $109m for exploration of well and other works in each block and deposit the amount as bank guarantee as per the bidding proposal, according to Petrobangla.