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Saturday, 30 August, 2008, 11:40 GMT | more prices >>

Petrobangla firm on deadline



By Upstream staff 

Bangladesh will not extend a May deadline for international oil firms to submit documents for offshore gas bidding.

The country, keen to press on with efforts to boost output, declined requests by a number of international companies on Monday to extend the time limit for submitting the documents, which closes in the first week of May.

"We conveyed to them our inability as we are keen to begin exploratory work by next October, otherwise the total package of gas drilling in 28 offshore blocks will be delayed," said Jalal Ahmed, chairman of the state-run Bangladesh Oil, Gas and Mineral (Petrobangla).

Before the bidding, Bangladesh organised a two-day presentation on the energy sector attended by representatives of 28 international oil companies, which ended on Monday in Dhaka.

According to Reuters, Bangladesh has 13.54 trillion cubic feet of proven and recoverable gas reserves, but is facing at least 100 million cubic feet of gas shortages a day.

The country now supplies up to 1.7 billion cubic feet of gas daily against a daily demand of 1.8 Bcf, officials said.

"The demand is growing fast and we will face a crisis by the 2011. Before that, we must add more gas to ensure at least 7% economic growth," Jalal said at a news conference.

Bangladesh issued international tenders for offshore bidding last month. As of Monday, Petrobangla had sold 32 tender documents to companies.

Officials said the highest price for gas from deep sea blocks would be about $4.70 per thousand cubic feet and the highest price for shallow blocks would be nearly $4.40 per unit.

Currently, the highest price for onshore gas in Bangladesh, which is only producing gas from one offshore block, is $2.90 per unit and the price for offshore gas is 25% higher.

Oil companies will have to share 55% of their profit with Petrobangla in addition to paying a 40% rate of corporation tax to the government.

Firms that bought documents and held talks included BP, Cairn Energy, Chevron and ConocoPhillips, China's CNPC International, Japan's Nippon Oil Exploration, India's ONGC Videsh and Indian OIl and France's Total.


Monday, 31 March, 2008, 15:40 GMT  | last updated: Tuesday, 01 April, 2008, 03:30 GMT

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