Energy Bangla

State-owned Petrobangla is likely to award three shallow water blocks to US-based ConocoPhillips and India’s ONGC for oil and gas exploration by December. In the international bidding invited early this year, Conoophillips submitted a bid for Block SS-7 while ONGC submitted bids for Blocks SS-4 and SS-9.
According to official sources, the bid proposals of the two IOCs have already received the approval of the government’s top level. ‘The Cabinet Committee on Economic Affairs has already given its approval to the proposals,’ said Petrobangla Officials. They said that ‘Now we’re hopeful of signing the production sharing contracts (PSCs) with the ConocoPhillips and ONGC by December,’
If the PSC is signed with ONGC, it will be the first entry of an Indian oil company to Bangladesh. On the other hand, Conoco will get another field in its existing operation in two deep sea blocks. State-owned BAPEX will have a 10 percent carried interest stake in all three blocks.
The area of the three blocks ranges from 4,463 to 7,692 sq km (1,723-2,970 sq miles), at water depths of 3-200 meters. ConocoPhillips and ONGC Videsh were the only two firms that submitted bids for the total three blocks at the close of bid submission deadline on April 2, against nine shallow water blocks Bangladesh offered in the latest bidding round in December 2012.