BANGLADESH

A Chinese geophysical service firm, BGP Incorporation, has launched two-dimensional seismic survey for exploration of oil and gas in two blocks of the Bay of Bengal.

"The survey was started this week," Energy and Mineral Resources Division secretary Mohammad Mejbah-uddin told on Wednesday.

He said the survey is expected to end by April.

BGP is surveying blocks 10 and 11 in the Bay to determine the exact location and volume of oil-gas reserves.

US oil giant ConocoPhillips chose the Chinese firm from a shortlist of eight companies for the survey.

On Sep 22, the Chinese firm won the final tender called by the US firm. Petrobangla gave go-ahead to ConocoPhillips on Dec 7 to appoint the Chinese firm.

The government on Jun 16 last signed a production-sharing agreement (PSC) with ConocoPhillips authorising it to operate seismic surveys and lift gas in sea blocks 11 and 12 -- an area of 5158 square kilometres.

The two blocks, some 280 km from Chittagong port, are about 1 km to 1.5 km deep.

The agreement provides for conducting two-dimensional seismic survey covering 973 line kilometres in the initial stage.

The US firm, as a part of the nine-year deal, has given a bank guarantee of $160 million and agreed to operate surveys and excavation in three stages.

The National Committee on Protection of Oil, Gas and Mineral Resources, Power and Ports — comprising academics, students, professionals and media activists — has since been holding series of demonstrations to protest the deal.

No sooner had the deal been inked with ConocoPhillips than the committee enforced a half-day general strike in protest.

The committee claims that the deal allows the US firm to take away 80 percent of oil and gas it will extract off the deep-sea, while Bangladesh will count losses carrying the remainder to mainland, or buy oil and gas from ConocoPhillips.

At present, Bangladesh produces around 2 billion cubic feet of gas a day against daily demand of more than 2.5 billion.