India's exploration bid 'overlaps' block 21 in Bay

Based on original map by Ministry of Petroleum & Natural Gas, India

With an inter-ministerial technical committee failing to demarcate Bangladesh's deep sea boundary in two years, India presses on with its aggressive bidding for oil and gas in which at least two blocks are visibly located within its closest neighbour's waters.

According to the block acreage map published by the Indian government, larger parts of blocks D-23 (8,706sqkm) and D-22 (7,790sqkm) appear to have overlapped Bangladesh's block 21 in the Bay of Bengal, deep down from the coast of the Sundarbans.

The Indian government floated its sixth licensing round under the New Exploration Licensing Policy (NELP-6) February 24, offering 55 blocks (25 onshore, 6 shallow water and 24 deepwater blocks beyond 400m bathymetry) for exploration. The bid closes on September 15, according to the Indian Ministry of Petroleum & Natural Gas website.

Both Indian blocks are located right below Bangladesh's block 21, floated way back in 1990 during the second round block bidding.

"Bangladesh opened exploration bid there about 16 years back and we did not receive any objection from India as yet," a member of the inter-ministerial committee, headed by the foreign ministry, told The Daily Star opting not to be named.

"In fact, India had been holding its exploration bids over the area, maintaining about 50km distance from the Bangladeshi block 21 always. There was no scope for a dispute," he said.

He, however, admitted that it is hard to say for sure how much the Indian blocks actually overlapped the Bangladesh territory. "The map can be deceiving as it does not specify the exact geo-position of the Indian blocks. But visually we can find that these blocks have crossed 89 degrees longitude. Indian block D-23 also appears to have overlapped Bangladeshi block 21."

International law allows each country to claim 200 nautical miles from its coast as its sea territory.

However, this is a tricky matter as the coasts of India and Bangladesh and Myanmar follow a curve which imply overlapping of territories. As per international practices, neighbouring countries settle such issues through mutual understanding before venturing into bidding and exploration.

But there had been no discussion or exchange of information in this case. "As per international laws, India can not take such step. India should have informed Bangladesh," he said.

A similar situation arose between Indonesia and the Philippines. But instead of ignoring the neighbours, both countries struck a cordial deal and they went on to jointly explore and develop the disputed block.

Petrobangla, which spearheads the oil and gas block bidding in Bangladesh, has been pressing for the demarcation of the deep sea areas for long to no avail.

In 2004, the foreign ministry formed a committee with members from Petrobangla, Geological Survey of Bangladesh, the Navy, Spaarso, Inland Water Transport Authority and Surveyor of Bangladesh for this purpose.

The committee was to recommend the government how to demarcate the deep sea territory, fulfilling requirements of the United Nations. But the committee became dysfunctional within a year and its foreign ministry members were busy making foreign trips.

When The Daily Star asked the foreign ministry about the committee and the issue of block overlapping, it replied in the negative. A top official, however, said that he would personally inquire about the matter and take appropriate action.

Though the government opened block 21 in two rounds of oil and gas bidding, there had been no offer in it as this area is the most isolated one of all the blocks. In the second round bid, a European company Maersk Olie had negotiated over blocks 19 and 20, adjacent to block 21. Maersk, which talked about good prospects of finding oil and gas in the stretch ranging from blocks 19 and 21, eventually withdrew from the bid as negotiations fell flat.

All leading explorers in the world are turning their attention to all potential blocks as the oil prices continue to soar of late, said an executive of an oil company.

"This is the right time for investment in the deep sea exploration for oil and gas because of higher prospect of returns," he said.