Govt would do nothing wrong Insists PM on exploration deal

[Tiki Tam Tam]

Govt would do nothing wrong
Insists PM on exploration deal

Prime Minister Sheikh Hasina came down heavily on the 'National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports' yesterday posing the question- who is more patriot and thinks more for the country's welfare than her?

Without mentioning any name, she indicated that the committee is opposing the government's signing of a production sharing contract with an American oil company while she was laying the foundation stone of the Board of Investment's (BoI) head office building at Agargaon in the capital.

The government on Thursday inked the deal with ConocoPhillips for exploring oil and gas from two deep-sea blocks in the Bay of Bengal.

The US oil company won the two deep-sea blocks after taking part in an international tender floated by Petrobangla in 2008.

The PSC allows ConocoPhillips to conduct exploration in the undisputed part of the two blocks that cover an area of 5,158 square kilometres. The two blocks are located at a distance of about 280 kilometres from the port city of Chittagong.

The premier said these groups often cry out loud in the name of protecting the interest of the country. “Where were they when there was no production of electricity and no gas exploration?”......

The government, she said, has formulated the National Industrial Policy identifying 32 sectors that include agricultural products, readymade garments, shipbuilding, tourism, ICT goods and services, jute and leather goods, plastic goods, and ceramics industry as the thrust sectors.

She said Bangladesh has become the most attractive investment destination in South Asia for the foreign investors and as a result foreign direct investment is increasing gradually......

The PM said foreign investors are keen to investment in Bangladesh due to its geographical location, cheap and easily trainable labour, easy regional connectivity, increasing domestic market and attractive incentive package.

Govt would do nothing wrong

If one goes by the Govt statement, then the interest of Bangladesh has been keep paramount.

It is indeed a positive step if the government has formulated the National Industrial Policy identifying 32 sectors that include agricultural products, readymade garments, shipbuilding, tourism, ICT goods and services, jute and leather goods, plastic goods, and ceramics industry as the thrust sectors.

There can be no second opinion or so it is being projected that Bangladesh has become the most attractive investment destination in South Asia for the foreign investors and as a result foreign direct investment.

It is a truism that foreign investors are keen to invest in Bangladesh due to its geographical location, cheap and easily trainable labour, easy regional connectivity, increasing domestic market and attractive incentive package.

 

[saleen_s7]

If one goes by the Govt statement, then the interest of Bangladesh has been keep paramount.

It is indeed a positive step if the government has formulated the National Industrial Policy identifying 32 sectors that include agricultural products, readymade garments, shipbuilding, tourism, ICT goods and services, jute and leather goods, plastic goods, and ceramics industry as the thrust sectors.

There can be no second opinion or so it is being projected that Bangladesh has become the most attractive investment destination in South Asia for the foreign investors and as a result foreign direct investment.

It is a truism that foreign investors are keen to invest in Bangladesh due to its geographical location, cheap and easily trainable labour, easy regional connectivity, increasing domestic market and attractive incentive package.

there is a huge opposition to this deal signed by the govt, and surprisingly it isn't the BNP as one would expect. I think this deal will cause irrevocable damage to govt's reputation.

 

[Roybot]

What exactly are these people opposing again?

Muhith pooh-poohs gas export talks | Bangladesh | bdnews24.com

 

[saleen_s7]

What exactly are these people opposing again?

Muhith pooh-poohs gas export talks | Bangladesh | bdnews24.com

Well. Neutral people will believe anything against the govt, which isn't coming from BNP. An enemy's enemy is always a friend even a half day hartal has been called.

Half-day hartal in Dhaka on July 3


Sat, Jun 18th, 2011 4:08 pm BdST
Dhaka, June 18 (bdnews24.com) — The National Committee on Protection of Oil, Gas and Mineral Resources, Power and Ports has called a half-day hartal in Dhaka for July 3, demanding cancellation of the deal signed with ConocoPhilliphs.

Committee member-secretary Anu Muhammad declared the hartal programme at a press conference at Mukti Bhaban, Purana Paltan in the city around 11am on Saturday.

A production-sharing contract (PSC) deal was signed between the government and ConocoPhillips on Thursday, allowing the company to start lifting gas from two blocks in the Bay of Bengal.

At the press conference, Muhammad announced a series of programmes to be held from June 20 to July 3 in protest against the deal.

The committee, he said, would stage long marches in different upazilas of the country from June 21 to July 1.

Muhammad said the committee would exchange opinions with people from different walks of life, students and youths from June 20 and July 2.

Apart from enforcing the half-day shutdown in the city, the citizens' forum will also demonstrate in front of the deputy commissioners' offices across the country on July 3, Muhammad said.

On the day (July 3), the committee will form human chains carrying banners, festoons and placards alongside main roads in the upazilas and unions throughout the country.

ConocoPhillips was chosen to conduct its seismic surveys in blocks 10 and 11 as per an international tender in line with a model PSC-2008 formulated during the last caretaker government.

The final go-ahead for inking the PSC was given on May 23 by the cabinet committee on economic affairs.

The oil-gas protection committee has been opposing the deal from the very beginning.

Besides, an MP, several leftist parties and fuel experts gave speeches and issued statements against the deal.

They said Bangladesh would own 20 percent of the gas and it would have to buy the rest 80 percent at a certain rate according to the PSC.

If Bangladesh fails to import the rest of the gas amount, ConocoPhillips could export it elsewhere.

In the deal signing programme, finance minister A M A Muhith, however, said the deal protected the national interest.

According to the deal, ConocoPhillips will be authorised to operate its seismic surveys and lift gas in sea blocks 11 and 12, an area of 5,158 square kilometres.

The two blocks, some 280 km away from Chittagong Port, are about 1-1.5 km deep.

ConocoPhillips will ensure a bank guarantee of $160 million in the nine-year deal, conditioned to operate surveys and excavation at three stages.

Half-day hartal in Dhaka on July 3 | Business | biz.bdnews24.com

 

[Zabaniyah]

What exactly are these people opposing again?

They said Bangladesh would own 20 percent of the gas and it would have to buy the rest 80 percent at a certain rate according to the PSC.

^^^^This....

 

[Roybot]

^^^^This....

ConocoPhillips will not be able to export piped gas from the two deep water gas blocks.

The US firm will, however, be able to export gas only in liquefied natural gas (LNG) form provided it gets consent from Petrobangla.

Petrobangla will have first right of refusal in this regard. If Petrobangla does not accept to purchase LNG within six months, the contractor will have the right to sell its share in domestic market to a third party.

ConocoPhillips will be able to export oil only after meeting local demands.

The US firm has provided guarantee worth US$ 52 million for initial exploration period, $58 million for first extension period and $50 million for second extension period.

Minimum bidded work programmes include 973 line km seismic survey and one optional well during initial exploration period, 500 sqkm 3D seismic and one exploration well during second extension period.

Cost recovery is 55 per cent per year of available petroleum.

Profit share for Petrobangla is at a minimum of 55 per cent to a maximum of 80 per cent for natural gas and a minimum of 60 per cent to a maximum of 85 per cent for oil or condensate.

ConocoPhillips is now the second US firm that has PSC with Petrobangla for oil and gas exploration in Bangladesh.

http://www.thefinancialexpress-bd.com/more.php?news_id=139528&date=2011-06-17

From what little experience I have in the petroleum sector, this seems like a fairly standard deal.

However lets not forget that this deal will only go ahead if the maritime dispute's result is in favour of Bangladesh. All this for something which isn't even sure yet. However having a giant US company as a partner will surely make Bangladesh's case stronger at UN in regards to the maritime dispute(Lobbying by ConocoPhillips). Pretty good move by Bangladesh government imho.

 

[Zabaniyah]

From what little experience I have in the petroleum sector, this seems like a fairly standard deal.

However lets not forget that this deal will only go ahead if the maritime dispute's result is in favour of Bangladesh. All this for something which isn't even sure yet. However having a giant US company as a partner will surely make Bangladesh's case stronger at UN in regards to the maritime dispute(Lobbying by ConocoPhillips). Pretty good move by Bangladesh government imho.

Its a fairly decent move in my opinion. And yes those lobbyist can be pretty powerful in American politics.

People are just unhappy that Bangladesh is only going to get 20% of the deal. But considering Bangladesh is a small country, and the USA a larger and an industrialized one, it is safe to say it is a fairly decent deal.

And 20% is actually quite a lot for Bangladesh. But would have been better if it was 40% for Bangladesh and 60% for America

 

[rubyjackass]

Production sharing agreement - Wikipedia, the free encyclopedia

It says production sharing agreements usually make governments own 80%. But here itdoes not seem so. May be the pressure groups(whatever the name of the committee is) have a point.

 

[Tiki Tam Tam]

If the terms of this deal is not satisfactory, what would be taken to be satisfactory?