Govt to sign offshore deals with IOCs by October

The energy ministry plans to sign shortly contracts with newly selected bidders in the third round international bidding for hydrocarbon exploration in the country's offshore territory.
Energy Secretary Mohammad Mohsin yesterday said they were going ahead with the plan to complete the contract signing process by October to take advantage of the ensuing winter season for starting the exploration work.
“We're hopeful of completing the process by early October subject to approval by the cabinet committee on public purchase,” he said.
Two international oil companies (IOCs) -- Conoco Philip and Tullow -- were selected as responsive bidders for the nine offshore blocks in the Bay of Bengal under the latest bidding round that took place May.
After completion of evaluation of the bids by state-owned Petrobangla, the energy ministry put forward the proposals of the US-based Conoco and Irish company Tullow to the cabinet committee.
The energy ministry had moved for the third round international bidding in February with a plan to complete the contract signing and block awarding process by September or October.
The prime objective of the plan is to utilise the ensuing dry season for exploration work under the contracts.
Officials said the proposals of the two IOCs might come for consideration in the next couple of weeks as the Cabinet Division is now scrutinising the bids.
The government invited bids for the hydrocarbon exploration at a time when the country has been experiencing severe energy crisis, particularly in gas and power supply.
The present gas supply is 1800 plus mmcfd against the demand for 2100 mmcfd, leaving a shortfall of around 300 million mmcfd.
The electricity shortage is about 1500MW and the shortfall is attributed to the poor supply of gas.