Deputy Secretary of Energy and Mineral Resources Division Khadiza Nazneen, Secretary of Petrobangla Syed Ashfaquzzaman and Vice President of Daewoo Se Bo Jo signed the MoU on behalf of their organizations -AA
Petrobangla (Bangla-desh Oil, Gas and Mineral Corporation) and South Korean resource developer Posco Daewoo Corp signed a Memorandum of Understanding (MoU) on Tuesday to explore gas, oil in deep sea block-12 in the Bay of Bengal.
Deputy Secretary of Energy and Mineral Resources Division Khadiza Nazneen, Secretary of Petrobangla Syed Ashfaquzzaman and Vice President of Daewoo Se Bo Jo signed the MoU on behalf of their organizations at Dr Habibur Rahman auditorium at Petrobangla head office.
Prime Minister's Power, Energy and Mineral Resources Adviser Dr Tawfiq-e-Elahi Chowd-hury, witnessed the signing ceremony as the chief guest, while State Minister for Power, Energy and Mineral Resources Nasrul Hamid was present as the special guest.
Chairman of Parliamentary Standing Committee Tajul Islam, secretary of Energy and Mineral Resources Division M Nazimuddin Chowdhury, Chairman of Petrobangla Abul Mansur M Faizullah, South Korean Ambassador in Dhaka Ahn Seong-doo and Chief Executive of Daewoo Kim Young-Sang were present at the ceremony among others.
Posco Daewoo Corp will initially explore oil and gas in the area for 5 years and after that they can expand the contract for 3 years. Dr Tawfiq-e-Elahi Chowdhury urged Daewoo to complete the exploration work within shortest time, adding, "We have given importance for four topics including survey, exploration, well digging and LNG import aimed at ensuring energy security."
Nasrul Hamid said the government is importing LNG and increasing LPG for saving natural gas and supplying it to industries. "Out of the 15 blocks, exploration of gas and oil started from one block and initiative would be taken to search gas and oil rest of the blocks," he said.
According to the contract, the international oil company (IOC) would explore gas and oil from 1,000 to 2,000 meters in the deep sea of the Bay of Bengal and sell gas and oil at competitive prices with profit from 65 percent to 90 percent in oil and from 60 to 85 percent in gas.