Maruf Mallick
bdnews24.com energy correspondent
Dhaka, June 21 (bdnews24.com) — Offshore oil and gas exploration deals await directions from prime minister Sheikh Hasina, an official said on Sunday.
An official of the power, energy and mineral resources told bdnews24.com a summary of the deals was sent to the prime minister on Sunday.
The ministry is presently under the prime minister's charge.
During the caretaker government the cabinet committee on public procurement asked the concerned ministry to take a decision regarding the deals.
The government launched international bidding on Feb 15 2008 for 28 offshore blocks, and Petrobangla opened the bid documents on May 7 the same year, saying evaluation of the proposals would be completed "within three weeks" for a final decision.
Seven international companies took part in the bidding.
The Houston-based Conoco-Phillips, Australia's Santos International, Longwoods Resources (a US-China joint venture), Korea International Oil Corporation, China National Offshore Oil Corp, known as CNOOC, Comtrack Services and Tullow were among the players.
Petrobangla, the state-run oil, gas and mineral resources corporation, received 22 bids for 15 blocks out of 28 offered.
It has backed Conoco-Phillips' bid for deep sea blocks No 10, 11, 12, 15, 16, 17, 20 and 21. It also recommended Irish company Tullow for block No 5.
Terms
In line with the Model Production and Sharing Contract approved by the cabinet on Feb 5 last year, the government would sign a four-year exploration deal for shallow sea blocks and five-year for deep sea blocks.
The deals could be extended by four more years.
After submission of development plans, a 25-year agreement would be signed for gas fields and 20-year deal for oil fields.
The companies will pay compensation in case any accident takes place due to carelessness and inefficiency.
If any company wants to sell more than 50 percent of its shares, it will have to take permission from the government.
The companies would be allowed only to export Liquefied Natural Gas by taking permission from Petrobangla. They can export oil only after meeting the domestic demand.
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