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Chinese co set for Ctg gas exploration
Chinese co set for Ctg gas exploration | Business | bdnews24.com
Mon, Mar 19th, 2012 6:24 pm BdST
Aminur Rahman Rasel
bdnews24.com correspondent
Dhaka, Mar 19 (bdnews24.com) The state-run exploration agency Bapex has finalised a draft agreement to explore gas at block 22 in joint venture with a Chinese corporation.
The draft, which now awaits approval by the Bapex directors, Petrobangla and energy ministry, says Sinopec Corporation will get 70 percent of the gas if extraction was possible in the block.
It also says the company will have to pay if any accident takes place.
Bangladesh Petroleum Exploration and Production Company Limited, or Bapex, will get 30 percent of the extracted gas and will buy the rest from Sinopec. Sinopec will be able to sell its share to third parties within the country if Bapex is unable to buy it, according to the provisional deal.
Acting Bapex managing director M Amzad Hossain told bdnews24.com the agreement was for exploring and extracting gas in Chittagong's Patia, Jaldi, Sitapahar and Kasalang areas.
"If the board approves it, it will be sent to a Petrobangla review committee and then to energy ministry for final approval," he said
.
The government invited expressions of interest from multinational companies for exploration in block 22 in December 2010.
Sinopec was picked in a primary selection on January last year. The energy ministry in October last year ordered Petrobangla to strike an agreement with the company.
WHAT'S IN THE DRAFT
Bapex will get 30 percent of the gas extracted from the region, as opposed to the 20 percent it was supposed to get from a previous agreement made with Candadian Niko Resources.
The draft says Petrobangla will fix the gas price in accordance with the price it takes from international oil sellers.
Bangladesh government will not spend anything on the exploration. Any accident during the exploration will be compensated by the company.
The contract with Niko had no such terms on compensation. Two massive blow-outs took place while the company was extracting gas from the Chhatak gas field in Sylhet.
A probe committee that looked into the accidents demanded Tk 7.47 billion in compensation from Niko but the company refused. In June 2008 a case was filed against the company at a local court. The case is still on trial.
bdnews24.com/arr/sh/bd/1810h
Chinese co set for Ctg gas exploration | Business | bdnews24.com
Mon, Mar 19th, 2012 6:24 pm BdST
Aminur Rahman Rasel
bdnews24.com correspondent
Dhaka, Mar 19 (bdnews24.com) The state-run exploration agency Bapex has finalised a draft agreement to explore gas at block 22 in joint venture with a Chinese corporation.
The draft, which now awaits approval by the Bapex directors, Petrobangla and energy ministry, says Sinopec Corporation will get 70 percent of the gas if extraction was possible in the block.
It also says the company will have to pay if any accident takes place.
Bangladesh Petroleum Exploration and Production Company Limited, or Bapex, will get 30 percent of the extracted gas and will buy the rest from Sinopec. Sinopec will be able to sell its share to third parties within the country if Bapex is unable to buy it, according to the provisional deal.
Acting Bapex managing director M Amzad Hossain told bdnews24.com the agreement was for exploring and extracting gas in Chittagong's Patia, Jaldi, Sitapahar and Kasalang areas.
"If the board approves it, it will be sent to a Petrobangla review committee and then to energy ministry for final approval," he said
.
The government invited expressions of interest from multinational companies for exploration in block 22 in December 2010.
Sinopec was picked in a primary selection on January last year. The energy ministry in October last year ordered Petrobangla to strike an agreement with the company.
WHAT'S IN THE DRAFT
Bapex will get 30 percent of the gas extracted from the region, as opposed to the 20 percent it was supposed to get from a previous agreement made with Candadian Niko Resources.
The draft says Petrobangla will fix the gas price in accordance with the price it takes from international oil sellers.
Bangladesh government will not spend anything on the exploration. Any accident during the exploration will be compensated by the company.
The contract with Niko had no such terms on compensation. Two massive blow-outs took place while the company was extracting gas from the Chhatak gas field in Sylhet.
A probe committee that looked into the accidents demanded Tk 7.47 billion in compensation from Niko but the company refused. In June 2008 a case was filed against the company at a local court. The case is still on trial.
bdnews24.com/arr/sh/bd/1810h
