PM okays change in PSC for 3 deep sea blocksManjurul Ahsan
The prime minister, Sheikh Hasina, has approved a Petrobangla proposal to amend the model production sharing contract 2012 offering international oil companies more stakes in extracts from three hydrocarbon blocks in the deep sea, officials said.
Hasina, as the minister for power, energy and mineral resources, has approved the proposal.
‘We have received the approval letter today,’ a Petrobangla official told New Age on Tuesday.
In keeping with the proposed amendment to the contract, an international oil company would sell 50 per cent of its shared gas to Petrobangla for $6.5 a thousand cubic feet instead of $5 and the rest to a third party at a negotiated price instead of selling its entire gas to Petrobangla at the PSC price.
The cost recovery limit has also been increased to 70 per cent from 55 per cent of the produced oil and gas in the amended PSC and Petrobangla will pay 37.5 per cent corporate tax on behalf of IOCs.
‘Now the amended draft of the model PSC 2012 will be placed in the cabinet for approval before Petrobangla floats international tender for oil and gas exploration in deep sea block 12, 16 and 21,’ the Petrobangla official said.
On Tuesday, he said that Petrobangla had also received the approval letters for signing contracts with Indian Oil and Natural Gas Corporation Videsh for oil and gas exploration in shallow sea block 4 and 9. It also received approval for signing contract with US ConocoPhillips for the job in shallow sea block 7.
By the end of the first phase of bidding for nine shallow sea blocks, on April 1, only ONGC Videsh and ConocoPhillips submitted bids.
In the re-tender, on July 29, the Santos-Krisenergy joint- venture submitted a bid for shallow sea hydrocarbon block 11.
On December 17, 2012, Petrobangla floated international tenders for oil and gas exploration in the 12 offshore blocks — nine in the shallow sea and three in the deep sea.
But being ‘requested’ by the interested IOCs, Petrobangla suspended the bidding process for the deep sea blocks and increased stakes of international oil companies in deep sea gas block 12, 16 and 21.
In the model PSC 2012, the government increased the price for deep sea gas to $5 a thousand cubic feet from about $4.2 in the model PSC 2008.
ConocoPhillips is conducting a seismic survey over deep sea block 10 and 11 under the 2008 production sharing contract.
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