Bangladesh is set to offer again offshore gas blocks "disputed" with neighboring India in next month's bidding round for oil and gas exploration by international oil companies, a top Petrobangla official told Platts Tuesday.
He said state-owned Petrobangla has decided to include the disputed blocks for offer as it expects this would help establish its rights over the disputed blocks.
"Besides, it is now 'impossible' to offer dispute-free blocks in the western part of the Bay of Bengal bordering India as we don't know for sure which blocks are dispute free," the official said. He said the number disputed blocks to be offered might be over half a dozen, and the contracts for these blocks would include a clause saying bidders were entitled to exploration rights only if the dispute is resolved in Bangladesh's favor.
The total number of offshore gas blocks to be offered might be over a dozen, he said adding, the number is yet to be finalized.
In the February 2008 bidding round, state-owned Petrobangla had offered a total of 28 offshore gas blocks including the disputed gas blocks, but only managed to ink a production sharing contract with ConocoPhillips for a portion of two disputed deepwater blocks on June 16, 2011. Out of the total 28 blocks offered in 2008, 27 were reportedly disputed as India and Myanmar had protested the awarding of these blocks.
India claimed 10 blocks as disputed, while Myanmar claimed the remaining 17 blocks as disputed.
India and Myanmar had also awarded some disputed blocks to international oil companies earlier for exploration, he said.
Meanwhile, the March 14, 2012 verdict of the International Tribunal for the Law of the Seas resolved the dispute between Bangladesh and Myanmar, and the country is now preparing an official gazette to determine how many blocks become dispute-free following the ITLOS verdict, the Petrobangla official said. It is also remapping the blocks to offer in August bidding round, he added.
The blocks as offered in 2008 bidding round are being resized, the official said.
The June 2011 PSC gave ConocoPhillips the right to explore around 70% of block DS-08-10 and 85% of block DS-08-11. As for the remaining 30% area of DS-08-10, it is deemed disputed with India, and the US firm would have to wait for a verdict by an international tribunal, the official said.
Separately, ConocoPhillips will be able to conduct oil and gas exploration in the complete area of deepwater block DS-08-11 as the maritime boundary dispute with neighboring Myanmar is now settled.
Petrobangla could not ink a PSC with UK's Tullow Oil for shallow water gas block SS-08-05 awarded in the 2008 round because of the dispute with India.
According to UK consultant Wood Mackenzie, part of block SS-08-05 was licensed by India as block NEC-DWN-2004/2 to Santos in 2007.
The Indian oil and gas block overlaps Bangladeshi blocks SS-08-09 and SS-08-14, it said.
Further south, another Santos block awarded by India, NEC-DWN-2004/1, overlaps Bangladeshi blocks DS-08-14, DS-08-19 and DS-08-24, Wood Mackenzie said.
Bangladesh launched arbitration proceedings over its maritime boundary with India under the UN's Convention on the Law of the Sea in October 2009. The verdict is expected in 2014.
The Petrobangla official also said that the August bidding round would include dispute-free gas blocks in the eastern part of the Bay of Bengal in line with the March verdict of the International Tribunal for the Law of the Sea.
The tribunal based in Hamburg, Germany, upheld Bangladesh's claim to an exclusive economic zone of 200 nautical miles in the Bay of Bengal, and to a substantial share of the outer continental shelf beyond, thus ending its maritime boundary dispute with Myanmar.
Bangladesh to offer 'disputed' offshore gas blocks in August bidding round - Natural Gas | Platts News Article & Story
Coincides with Commissioning of INS Satpura which will join the Eastern Fleet.
He said state-owned Petrobangla has decided to include the disputed blocks for offer as it expects this would help establish its rights over the disputed blocks.
"Besides, it is now 'impossible' to offer dispute-free blocks in the western part of the Bay of Bengal bordering India as we don't know for sure which blocks are dispute free," the official said. He said the number disputed blocks to be offered might be over half a dozen, and the contracts for these blocks would include a clause saying bidders were entitled to exploration rights only if the dispute is resolved in Bangladesh's favor.
The total number of offshore gas blocks to be offered might be over a dozen, he said adding, the number is yet to be finalized.
In the February 2008 bidding round, state-owned Petrobangla had offered a total of 28 offshore gas blocks including the disputed gas blocks, but only managed to ink a production sharing contract with ConocoPhillips for a portion of two disputed deepwater blocks on June 16, 2011. Out of the total 28 blocks offered in 2008, 27 were reportedly disputed as India and Myanmar had protested the awarding of these blocks.
India claimed 10 blocks as disputed, while Myanmar claimed the remaining 17 blocks as disputed.
India and Myanmar had also awarded some disputed blocks to international oil companies earlier for exploration, he said.
Meanwhile, the March 14, 2012 verdict of the International Tribunal for the Law of the Seas resolved the dispute between Bangladesh and Myanmar, and the country is now preparing an official gazette to determine how many blocks become dispute-free following the ITLOS verdict, the Petrobangla official said. It is also remapping the blocks to offer in August bidding round, he added.
The blocks as offered in 2008 bidding round are being resized, the official said.
The June 2011 PSC gave ConocoPhillips the right to explore around 70% of block DS-08-10 and 85% of block DS-08-11. As for the remaining 30% area of DS-08-10, it is deemed disputed with India, and the US firm would have to wait for a verdict by an international tribunal, the official said.
Separately, ConocoPhillips will be able to conduct oil and gas exploration in the complete area of deepwater block DS-08-11 as the maritime boundary dispute with neighboring Myanmar is now settled.
Petrobangla could not ink a PSC with UK's Tullow Oil for shallow water gas block SS-08-05 awarded in the 2008 round because of the dispute with India.
According to UK consultant Wood Mackenzie, part of block SS-08-05 was licensed by India as block NEC-DWN-2004/2 to Santos in 2007.
The Indian oil and gas block overlaps Bangladeshi blocks SS-08-09 and SS-08-14, it said.
Further south, another Santos block awarded by India, NEC-DWN-2004/1, overlaps Bangladeshi blocks DS-08-14, DS-08-19 and DS-08-24, Wood Mackenzie said.
Bangladesh launched arbitration proceedings over its maritime boundary with India under the UN's Convention on the Law of the Sea in October 2009. The verdict is expected in 2014.
The Petrobangla official also said that the August bidding round would include dispute-free gas blocks in the eastern part of the Bay of Bengal in line with the March verdict of the International Tribunal for the Law of the Sea.
The tribunal based in Hamburg, Germany, upheld Bangladesh's claim to an exclusive economic zone of 200 nautical miles in the Bay of Bengal, and to a substantial share of the outer continental shelf beyond, thus ending its maritime boundary dispute with Myanmar.
Bangladesh to offer 'disputed' offshore gas blocks in August bidding round - Natural Gas | Platts News Article & Story
Coincides with Commissioning of INS Satpura which will join the Eastern Fleet.
