Petrobangla to ink deal with Daewoo

The state-owned energy company Petrobangla will sign an initial with Posco Daewoo International Corporation, a South Korean company, within this week to conduct exploration at deep sea gas Block No. 12 in the Bay of Bengal. The initial will be signed under the Speedy Supply of Power and Energy (Special Provision) Act, 2010. Petrobangla chairman Istiaque Ahmad made an announcement about the possible signing during a programme at Petro Center yesterday. The Energy and Mineral Resources Division had earlier placed a proposal in this regard before the Cabinet Committee on Economic Affairs. The Cabinet Committee on Economic Affairs sent it back to the Energy and Mineral Resources Division, for signing an initial with the South Korean company. The government has already amended the model production sharing contract (PSC) to include the provision of gas exports by international oil companies (IOCs) as it gets ready to sign the agreement with Posco Daewoo International Corporation for deep sea gas exploration.
According to the amendment, an IOC would sell around 50 per cent of the gas produced to Petrobangla at USD 6.50 per 1,000 cubic feet. Following that, the IOCs can offer Petrobangla to buy the rest of the gas in accordance with the state-owned company’s own terms and conditions. But if Petrobangla refuses to buy the remainder of the gas, the IOC would be allowed to sell the gas to a third party inside Bangladesh. And then, if the IOC is unable to strike a deal with a local company as well, it can export its share of gas to foreign buyers as liquefied natural gas (LNG).
Posco Daewoo and Kris Energy earlier submitted expressions of interest (EoIs) for Blocks 12, 16 and 21, but Kris Energy later declined to submit a request for proposal (RFP). Daewoo remained in the process and submitted an RFP for DS 12. Currently, three foreign companies—Chevron, Santos and Kris Energy—are working at onshore and shallow sea blocks in the country following international biddings in 1993 and 1997.

Petrobangla to ink deal with Daewoo

The state-owned energy company Petrobangla will sign an initial with Posco Daewoo International Corporation, a South Korean company, within this week to conduct exploration at deep sea gas Block No. 12 in the Bay of Bengal. The initial will be signed under the Speedy Supply of Power and Energy (Special Provision) Act, 2010. Petrobangla chairman Istiaque Ahmad made an announcement about the possible signing during a programme at Petro Center yesterday. The Energy and Mineral Resources Division had earlier placed a proposal in this regard before the Cabinet Committee on Economic Affairs. The Cabinet Committee on Economic Affairs sent it back to the Energy and Mineral Resources Division, for signing an initial with the South Korean company. The government has already amended the model production sharing contract (PSC) to include the provision of gas exports by international oil companies (IOCs) as it gets ready to sign the agreement with Posco Daewoo International Corporation for deep sea gas exploration. According to the amendment, an IOC would sell around 50 per cent of the gas produced to Petrobangla at USD 6.50 per 1,000 cubic feet. Following that, the IOCs can offer Petrobangla to buy the rest of the gas in accordance with the state-owned companys own terms and conditions. But if Petrobangla refuses to buy the remainder of the gas, the IOC would be allowed to sell the gas to a third party inside Bangladesh. And then, if the IOC is unable to strike a deal with a local company as well, it can export its share of gas to foreign buyers as liquefied natural gas (LNG). Posco Daewoo and Kris Energy earlier submitted expressions of interest (EoIs) for Blocks 12, 16 and 21, but Kris Energy later declined to submit a request for proposal (RFP). Daewoo remained in the process and submitted an RFP for DS 12. Currently, three foreign companiesChevron, Santos and Kris Energyare working at onshore and shallow sea blocks in the country following international biddings in 1993 and 1997.