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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.
