Bangladesh Wants Stake in Offshore Blocks

Government of Bangladesh plans to take 20 per cent stake in all the offshore gas blocks to be offered to the international companies for exploitation of hydrocarbon in the forthcoming bidding round.

The Financial Express reported that Bapex will will own 20 per cent carried interest stakes and invest proportionately with the winners of the bid after commercial hydrocarbon discovery in the offshore blocks.

Bangladesh did not take any carried interest stake in its latest offshore bidding round in February 2008, which was marred by protest from neighboring Myanmar and India over maritime boundary disputes.

An official from an international firm operating in Bangladesh, expressed doubt over the financial capabilities of Bapex to maintain 20 per cent carried interest stakes in offshore blocks.

Bangladesh has deferred its planned April offshore bidding round over procedural delays as it wants to reserve some shallow blocks for the country's sole oil and gas exploration company Bapex and also as it has decided to demarcate its offshore exploration areas again following a favorable verdict from a UN tribunal in its maritime dispute with Myanmar.

The newspaper reported that Bangladesh had initially planned to offer eight shallow water gas blocks in the bidding round, but following the favorable verdict from the International Tribunal for the Law of the Sea on March 14, it has moved for a fresh demarcation of its offshore gas blocks in the Bay of Bengal.