Petrobangla starts talks with ConocoPhillips
Petrobangla, the state-run oil and gas company, yesterday started negotiations with ConocoPhillips, a US oil and gas company, aiming to explore hydrocarbon potential in the Bay of Bengal.
The government evaluation committee had earlier selected ConocoPhillips and Irish company Tullow as right bidders to explore gas within Bangladesh maritime boundary to add energy resources to its reserve. Petrobangla will sit with Tullow next week.
"Talks with ConocoPhillips will continue for the next two or three days. We will discuss everything in detail and listen to them," Muqtadir Ali, chairman of Petrobangla, told the news agency.
Conoco offered to spend $2.496 million to conduct a two-dimensional seismic survey of 1,200 'line kilometres' in the initial mandatory work programme of five years for exploration, $58.1665 million for conducting a three-dimensional seismic survey of 500 square kilometres and for drilling one exploration well in the first extension period of two years, and $50 million for drilling another exploration well in the second extension of two years.
The company made almost similar offers for the six other blocks.
"We need to spend some time to settle the issue as it requires more negotiations," said a top Petrobangla official.
In 1974, Petrobangla conducted the first-round bidding, in which 47 companies took part. Petrobangla signed six contracts.
In 1988, Petrobangla called the second-round round bidding, but no international oil companies showed interest.
The third-round bidding was initiated in 1993 and Petrobangla awarded three contracts to the oil companies and the last biding was held in 1997-1999. Petrobangla signed five contracts with the oil companies at that time.
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