Dhaka, Mar 30 (BDNEWS) – Three companies of Petrobangla, the state-run oil, gas and mineral corporation has finalised a decision to develop Begumganj gas field under a joint venture agreement (JVA).
The decision will now be sent to Prime Minister Khaleda Zia, who is also in-charge of the Energy Ministry, for final approval, officials said.
The partners companies for development of Begumganj are Bangladesh Gas Fields Company Limited (BGFCL), Sylhet Gas Fields Limited (SGFL) and Bangladesh Petroleum Exploration and Production Company (BAPEX).
The budget for development of the gas field in two stages has been estimated at Tk 300 crore.
The BGFCL and SGFL will mobilize the fund while BAPEX will act as working partner, the officials said.
Shares of three companies will be equal.
The decisions were taken at a meeting at the Energy Division with Energy Advisor Mahmudur Rahman in the chair.
The meeting was attended by Petrobangla Chairman Mosharraf Hossain Bhuiyan and its Director (PSC) Raihanul Abedin, Director (Finance) Nurul Huda, Director (Operation) Rahman Morshed, BGFCL MD Nazrul Islam, SGFL MD Major (retd) Moktadir Ali and BAPEX MD M Jamal Uddin.
Quoting a meeting decision, officials said that Petrobangla will purchase the gas of the field in local currency when it will start production.
The price has been fixed at Tk 50 per thousand cubic feet (MCF). The price of gas of international oil companies is US$ 1.75 (Tk 122.50) to US$ 2.90 (Tk 203) per MCF.
"The purchase in local currency will benefit Petrobangla. Also, the margin of the partner companies will be strengthened," said Mahmudur Rahman.
The Begumganj field was discovered in 1979, but it was not developed due to its low reserve -- 32.7 billion cubic feet.
A Petrobangla source told BDNEWS that the three of the partner companies will sign a JVA after approval from the PMO.
A joint management committee will be responsible for the entire operation.
BDNEWS/1755 hrs
