The government has announced the offshore oil-and-gas-exploration bidding round-2012 inviting offers from international companies by March 18 for exploring hydrocarbons in 12 blocks in the Bay of Bengal.

State-run Petrobangla officially opened the bidding process during a press conference at its office in the city recently.

Prime Minister’s Energy Adviser Dr Tawfiq-e-Elahi Chowdhury, State Minister for Power and Energy Muhammed Enamul Huq, Energy and Mineral Resources Division Secretary Mohammed Mesbahuddin, Petrobangla Chairman Prof Hossain Monsur and Petrobangla Director (PSC) Muhammed Imaduddin, among others, were present at the press conference.

In his speech, Petrobangla Director (PSC) Muhammed Imaduddin said Petrobangla will simultaneously sell and receive bid documents for 90 working days starting from December 17 to March 18, 2013.

He said the government will publish the pre-qualification documents of the bidding round through advertisement in media. The bidding will offer nine shallow-sea blocks and three deep-sea blocks. The shallow blocks include the blocks SS-2, SS- 03, SS- 04, SS- 06, SS- 07, SS- 08, SS- 09, SS- 10 and SS- 11, each having an exploration area between 4,500 and 7,700 square kilometres. The deep-sea blocks are: DS-12, DS-16 and DS-21, each having exploration area between 3,200 and 3,500 square kilometers and a depth between 200 meters to 2,000 meters.
Any bidder, whether individual or a joint venture, must hold an offshore acreage as operator having track record of producing at least 15,000 bbl oil or 150 mmcfd natural gas daily to be considered as technically qualified for the bidding, Petrobangla officials said.
The government earlier increased natural gas prices to $5 per MCF (1000 cubic feet) in the model production sharing contract (PSC)-2012 against $4.50 previously.
Petrobangla officials said the price of natural gas currently stands between $7 and $8 per MCF on the international market.
As per the latest model PSC, companies exploring oil and gas in the Bay in future will not be allowed to export gas.

The state’s share in each block under the bidding round will be 10 percent as ‘carried stake’ while it would be 15 percent if the block is ring-fenced, as per the model PSC to be followed in future oil- gas exploration by the successful bidders on the bidding round-2012.
Officials claimed that Bangladesh’s bidding round is more competitive and balancing than those in neighboring India, Indonesia, Malaysia, Thailand, Trinidad and Tobago.

Govt opens bidding for gas exploration in Bay 11 December 2012