Mahfuz Emran: The Production Sharing Contract (PSC) has been sent to Prime Minister Sheikh Hasina for final approval. If approved by the Prime Minister, Petrobangla wants to invite tenders for oil and gas exploration in the sea this year.
According to Petrobangla sources, discussions were held with a few interested companies last in 2020. The meeting was attended by companies like Conoco Phillips, British Petroleum, ExxonMobil. The PSC that was presented to them at that time was the revised PSC 2019. In this regard, at that time companies suggested to make this PSC more attractive by revising it.
Petrobangla says the advisory committee submitted a draft model PSC (production sharing agreement)
recommending equal gas share for multinational oil and gas companies (IOCs). The committee’s recommendation was sent to the Ministry for approval without any cuts. The Energy Department has also agreed to this.
According to the previous PSC, if 75 million cubic feet of gas was extracted, Petrobangla would get 55 percent, IOC would get 45 percent. In this way, Petrobangla would get 60%, IOC 40% for extraction of 150 million and in case of 250 million, Petrobangla would get 65% and IOC 35% of gas. In this way, if 600 million cubic feet were produced, Petrobangla would get 80% and IOC would get 20% of the gas.
This time in the new PSC it will be half and half. That means they will get half the gas whatever the IOC extracts.
Gas prices will also be increased in the new PSC. In the current PSC, the price of gas in the deep sea is $170 per unit and in the shallow sea it is $5.5. Now in the PSC it is said to pay one hundred and seven dollars in deep sea along with its tax on behalf of Petrobangla and increase the price of gas at the rate of one and a half percent every year. However, neither of these two opportunities exists in the shallow sea.
The report given by WoodMackenzie as a consultant to Petrobangla said what would happen if the price were increased to 8/9 or $10.
Currently, the Indian company ONGC is working in these two blocks number 4 and 9 out of a total of 26 blocks in the deep and shallow sea.
After settling the maritime boundary disputes with Myanmar in 2012 and India in 2014 at the International Court of Justice, ownership over a total of more than 118,813 square kilometers of sea area became absolute.
But still in that sense oil and gas exploration in the sea has not started.
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