Bangladesh closes bid round
Bangladesh has closed bidding of its offshore round for acreage in the Bay of
Bengal according to a senior government official.
"As per the previous decision we could not extend the time limit, though a
number of international oil companies have requested for that," said
Muhammad Muqtadir Ali, a director of state-run Bangladesh Oil, Gas & Mineral
Corporation (Petrobangla) to Reuters.
Seven companies submitted 22 bidding documents for exploration rights in 15 of
the 28 blocks that were on offer, stated Ali.
"All the firms will initially spend nearly $1.7 billion which they committed
to submit as bank guarantee," Muqtadir said.
The companies will have to share 55% of profit with Petrobangla and also pay
a 40% corporate tax.
The licences will extend up to nine years for exploration in deep sea blocks
and eight years for shallow sea blocks.
Bangladesh's offshore area has been carved up into 30 blocks ranging from
2,611 square kilometers to 7,703 square km.
Evaluation of the tenders is expected to be completed by the end of September
with final deals signed by October.
07 May 2008 14:45 GMT
| last updated:
07 May 2008 14:51 GMT
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