Photo : TDM
The government plans to award the first time deep sea exploration to US company, ExxonMobil, in the election year.
Sources said that the US gas exploration giant ExxonMobil has officially proposed to the Energy Ministry to explore gas and oil in the deep sea of the Bay of Bengal.
The company expressed its interest in signing a memorandum of understanding (MOU) by August, subject to the government's approval.
The US multinational company ExxonMobil has offered to invest $30 billion (three thousand crore) in the exploration and extraction of oil and gas in the deep sea in Bay of Bengal.
ExxonMobil’s Opportunity Manager, Jonathan Wilson, has written to the Minister of State for Power, Energy, and Mineral Resources, expressing interest.
In addition, ExxonMobil said in the letter that the company estimated it would invest $100 billion if the seismic survey indicated the possibility of viable gas and oil.
The proposal was sent to the power and energy division on July 16 and has garnered significant attention amidst the backdrop of the much-anticipated national election.
ExxonMobil, renowned as the largest efficient exploration company in the world, aims to conduct two-dimensional (2D) and three-dimensional (3D) surveys in search of oil and gas in the deep waters of Bangladesh.
In a recent meeting, ExxonMobil officials discussed the proposal with concerned authorities in the presence of the State Minister for Power, Energy, and Mineral Resources, Nasrul Hamid.
To ensure a comprehensive analysis of the deal's pros and cons, the government has decided to form a high-level committee comprising experts to discuss the issue, as confirmed by the Energy Department.
Experts believe that ExxonMobil's involvement in the deep-sea exploration could be highly beneficial for the country. However, they emphasize the importance of careful scrutiny, especially in light of the upcoming national election. The proposed project could play a significant role in alleviating the current energy crisis in the country, but concerns regarding the gas price should also be given due consideration.
State Minister Nasrul Hamid expressed positivity regarding the proposal, assuring that the Energy Division is diligently evaluating ExxonMobil's proposition. The minister emphasized the need for thorough assessment before making any commitments.
Mokbul E. Elahi, former Director of BAPEX (Bangladesh Petroleum Exploration and Production Company Limited), “The government should float the tender so that all the exploration giants can participate in the bidding. We have 3500km data in BAPEX store and we should open for all so that the market becomes competitive.”
Exxon is a giant but they don't have bigger success story in India and Myanmar rather the medium companies explore more.
The proposal comes at a time when the government has been grappling with tepid responses to tenders calling for leasing deep-sea blocks due to the lower price mentioned in the Production Sharing Contract (PSC).
Earlier, the US exploration and energy giant communicated with the government repeatedly, but the government was waiting for the suitable time.
Meanwhile, the government has already amended the PSC to attract international companies to oil and gas extraction. The price of gas, which was found to have increased compared to before, the revised PSC is expected to be approved by the Cabinet at the end of July.
The Bay of Bengal has been divided into 26 blocks after maritime disputes with neighboring Myanmar and India. Some, 11 of which have rock in the shallow part. And there are 15 blocks in the deep sea. ExxonMobil wants to work in the deep sea. And 15 blocks are trying to get leases. Since 2014, Petrobangla has been trying to lease offshore blocks, but to no avail.
Even if the boundaries are defined geographically, when oil and gas extraction starts on one block, there is a high risk of gas leakage from neighbouring blocks.
In this regard, Prof Shamsul Alam an energy expert said, "Due to corruption, the concerned have made PSC in such a way that even if a foreign company comes, it cannot work." Regarding ExxonMobil’s investment proposal, this official said that the national polls are around the corner and the government must scrutinise everything properly before signing anything.
Experts said that despite the huge potential, there has been no effective initiative to explore for oil and gas in the Bay of Bengal so far. Neighbouring countries Myanmar and India have advanced a lot in the search for oil and gas in their waters, but Bangladesh is still lagging behind in this field.
Experts believe that the government should urgently search for oil and gas in the sea. Otherwise, the country may face a gas crisis in the near future. Because it is impossible to meet the entire demand for gas by importing,
The government is importing gas at a high price from the spot market to meet the shortage. The land’s gas reserves are also depleting. However, Bangladesh is lagging behind in oil and gas exploration in the Bay of Bengal.
In the meantime, several foreign companies have left the sea without completing the search. The U.N. tribunal awards Dhaka 19,467 sq. km of the 25,602 sq. km sea area of the Bay of Bengal. The multiclient survey required for the full survey has been pending for 8 years. The process of calling international tenders for oil and gas exploration is also getting delayed again and again.
TDM/SD
