7 reputed IOCs purchase bid documents for hydrocarbon exploration : Nasrul

State Minister for Power, Energy and Mineral Resources Nasrul Hamid said seven reputed international companies purchased bid documents to participate in the bidding round for offshore hydrocarbon exploration in Bangladesh.

He said this while talking to reporters on the sidelines of the promotional seminar on "Bangladesh Offshore Bidding Round 2024" at a city hotel on Wednesday.

The state minister said the huge presence of international oil companies in the event proves that they have full confidence in the Bangladesh government.

Fifteen other international companies are participating in the seminar with their keen interest in investing in the offshore areas, said Nasrul.

Nasrul Hamid said  Bangladesh is very confident about the success of the offshore bidding round as global oil majors are participating in it.

He said that Bangladesh’s energy market is a big one and it's growing fast. That’s why the biggest companies are very encouraged to participate in the bidding round, he added.

He said the PSC has been updated in a modern way protecting both the interest of the country and the investors.

Nasrul noted that the bidding round will be concluded by September and the government has a target to award contracts shortly so that the investors can start their job by next year.

He also said as per the plan, from exploration to production, the whole process will take 7-8 years to complete the job in the offshore areas.      

Nasrul Hamid said the government has also been updating the Model PSC for onshore areas.

Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury urged international oil companies (IOCs) to invest in the country’s offshore areas for hydrocarbon exploration terming the Bay of Bengal as the most peaceful area in the region.

“Though instability prevails at different places across the globe, South Asia, particularly the Bay of Bengal, remains the most peaceful area. There is no flash-point in this area. If investors think of a long-term investment, it will be less risky for them,” he said.

As there is a big market here, the investors will have no risk in their business, he told reporters.

He also turned down any possible impact of the Myanmar situation in this case regarding their investment.   

Petrobangla’s general manager (exploration) Farhana Shaon presented at the Bangladesh Offshore Bidding Round 2024".

Tawfiq-e-Elahi Chowdhury said the model production sharing contract (PSC) was updated and redesigned with new features that will give more benefit and profit to the IOCs such as R-factor through which both the government and the IOCs will be rationally sharing the profits.

He noted that a multi-client survey was conducted in the offshore areas which will provide data to the investors about prospects and potentiality of the gas blocks.

“This basin is much richer compared with other ones in the world. Prime Minister Sheikh Hasina’s leadership has created confidence for which we’re hopeful that this bidding round will be successful...So far we received a huge response,” he said.    

“We have been pursuing a middle way in attracting the investment so that both the investors and the owners can have a win-win situation,” he added.   

Meanwhile, the Petrobangla officials said the companies which are participating in the bidding round and the seminar include Petronas, ExxonMobil, Chevron, Inpex Corporation, Jogmec of Japan, CNOOC, ENI Spa of Italy, Kris Energy, ONGC and TGS and Schlumberger.   

With Energy Secretary Md Nurul Alam in the chair, the event was also addressed by the Chairman of the Parliamentary Standing Committee on Ministry of Power, Energy and Mineral Resources Ziaur Rahman, Petrobangla Chairman Zanendra Nath Sarker, Chevron Bangladesh president Eric M Walker and UK-based energy company TGS’s senior scientists Elizabeth Gilbard.