Bangladesh Looks to China to Help Develop Chittagong Hill Tracts

The Bangladesh government plans to initiate gas exploration in Kotia, Joldi, Kafalong and Shitapara structures in Chittagong Hill Tracts (CHT). The four gas structures are spread over Block 22 covering around 13,900 sq kms.

State-run Bangladesh Petroleum Exploration and Production Company (BAPEX) has entered negotiations meeting with the Chinese state-run Sinopec Shengli Oilfield Services to conduct the exploration activities in the four onshore structures. Discussions included the sharing of stakes between the two firms and gas pricing,  according to an official.

Sinopec top officials visited Dhaka last week and held discussions with BAPEX officials over the proposed joint venture between them to develop the prospective gas structures in the CHT.

BAPEX had invited a selected pool of foreign state-owned firms in January this year to develop jointly the gas structures in CHT region, bypassing competitive bidding. Sinopec was the only international firm to submit a proposal to develop four onshore gas structures in the CHT under joint venture with BAPEX.

'The government will award the job to Sinopec if it agrees to conduct exploration works in the CHT immediately,' said a senior BAPEX official. Gas pricing and other relevant issues will be settled following discussions with Petrobangla as it will purchase gas from the joint venture of BAPEX and Sinopec, said the official.

Source: Financial Express