What's new

Myanmar Objects to BD Gas Exploration Deal

eastwatch

SENIOR MEMBER
Jun 19, 2008
7,503
1
6,609
Country
Bangladesh
Location
Japan
Myanmar objects to deal with ConocoPhillips
M Azizur Rahman

Myanmar has objected to Petrobangla's planned signing of a production-sharing deal with US oil giant ConocoPhillips, according to sources.

Myanmar in a recent letter to the foreign ministry requested Bangladesh government to refrain from signing production sharing contract (PSC) with the US firm until the maritime boundary dispute between the two countries was resolved, a senior foreign ministry official said.

Myanmar claimed that both the deep-water offshore gas blocks DS-08-10 and DS-08-11, for which ConocoPhillips was selected to conduct exploration, lay within the boundary of its territorial waters.

The objection from the neighbouring country came at a time when the government completed all necessary formalities with ConocoPhillips before signing the PSC for oil and gas exploration in deep-water offshore gas blocks in the Bay of Bengal.

Petrobangla already inked an initial agreement with ConocoPhillips in October last prior to signing of the PSC on completion of its over two years' negotiation with the US firm.

Under the agreement ConocoPhillips has agreed to start exploration works in two said offshore gas blocks immediately after signing of the PSC.

It also agreed to avoid exploration activities in disputed areas in the blocks as claimed by neighbouring India and Myanmar.

ConocoPhillips has already been kept waiting to sign the PSC for over two years since launching of the 2008 offshore bidding round.

The latest objection from Myanmar over signing of PSC might further delay the signing of PSC with the US firm, said officials.

In its bid in 2008 the ConocoPhillips pledged to invest $110.66 million in total and offered bank guarantee of the same amount for the two blocks it got approval for.

The ConocoPhillips has committed to conduct 2D seismic survey covering 1200 line kilometres (LKM) during its initial five years of exploration period with an investment commitment of $ 2.496 million offering bank guarantee of the same amount.

It has also committed to conduct 3D seismic survey in 500 square kilometres and drill a well during the first extension period of two years investing $58.1665 million and offering bank guarantee of the same amount.

The company has pledged to drill one well in its second extension period of two years with an investment commitment of $50 million.

Officials said Myanmar also had raised objection during Bangladesh's offshore bidding round in 2008 too and had wrote letters to different international oil and gas firms asking them not to take part in the offshore bidding round.

Neighbouring India also raised objection over the bidding that time claiming part ownership over the offshore blocks as delineated by Petrobangla.

Protest from the neighbouring countries resulted in lukewarm response during the country's 2008 offshore bidding when only seven foreign firms submitted bids for 15 gas blocks out of 28 offered blocks.

The government is now in talks with the neighbours to settle the maritime boundary disputes for kicking off exploration in the prospective offshore structures and shrug off the country's perennial energy crisis.

It has also lodged suit with the United Nations tribunal to settle the maritime boundary disputes with neighbours.

At present Australian Santos operates Sangu gas field is the country's lone operational offshore gas field.

The government has so far awarded only 12 hydrocarbon blocks -- both onshore and offshore -- since gas exploration began in Bangladesh in late 1960s.

But the international companies are now active in only six blocks having given up the rest.
 
"Kukurer lez shoja hoy na..."...as the saying goes...!!

If we aint exploring in their area...and they still comes on bothering us, i guess BN knows what to do next...!!

It would also be interesting to see how long Myanmar upholds their objection, given we are now dealing with US oil giant...!!


Cheers!!!
 
"Kukurer lez shoja hoy na..."...as the saying goes...!!

If we aint exploring in their area...and they still comes on bothering us, i guess BN knows what to do next...!!

It would also be interesting to see how long Myanmar upholds their objection, given we are now dealing with US oil giant...!!

Cheers!!!
Because of the criminal activities by the trouble making Burmese Junta, the GoB has decided to award blocks near Arakan to the US giant ConocoPhillips. As far as I know, this region has more prospect of finding big quantity of gas/oil because it is near arakan.

So far, comparing to other areas, Burma has discovered more oil/gas in the Arakan region - both onshore and offshore. We need US support to neutralize Indian and Burmese unlawful activities.
 
Blocks are awarded with a precondition that Conoco Philips will not explore part of the blocks which are disputed. But Philips tried to pursuit that they still want to explore the full block and they care little about the dispute with Myanmar. Burmese Junta should know that Uncle SAM is behind this.

With this precondition I dont see any issues with Myanmar and GOB should send the clarification to Burma with its earliest.
 
It seems there is an organized and concerted effort to prevent US oil and gas companies from investing in Bangladesh with Prof. Anu Muhammad and the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports leading this selective campaign. Does this predicate the waning of US influence on this country and the filling up of the resulting vacuum by India and Russia? Myanmar’s objection to Petrobangla's planned signing of a production-sharing deal with US oil giant ConocoPhillips is merely an adjunct to this negative campaign against US companies in Bangladesh. The thinking inside Myanmar is probably along the line that since Bangladesh apparently does not want American companies to explore for gas in the Bay of Bengal there is no harm if we object to any agreement between Petrobangla and ConocoPhillips. If Myanmar were then to (forcibly) explore in the disputed blocks there is very little that our navy could do about it and it is unlikely we could ask for help from the United States, who we had just spurned. Dhaka may then look to New Delhi for assistance against Myanmar but that would also probably be a pointless effort since Bangladesh has disputes on ten exploration blocks claimed by India. In the end we could find ourselves with nothing to explore as all the blocks will have been taken over by the Indians or by Myanmar. Only a very naïve person would think that India actually has our best interests in mind while they gradually gobble up anything and everything of value on this side of the border. Although Bangladesh is now the third largest exporter of RMG to the United States many of the companies now operating in this country are actually owned by Indians. The BGMEA president has recently suggested providing further incentives and inducements for Indians to be involved in our RMG industry and new agreements may be signed in this regard during Prime Minister Manmohan Singh's visit to Bangladesh in February. The sudden outbreak of violence in the CEPZ targeting Korean and Japanese companies may be an attempt by external forces to push out (other) foreign competitors from Bangladesh. The Indians have already taken a large stake in the telecommunications sector (at knock down prices) and it is even rumored that RAW has a local office operating from inside the DGFI HQ in Mirpur Cantonment. In the meantime steady progress is being made to provide free transit facilities to India and several agreements have been signed in the last two months to this end. All that needs to be done is for our country to be renamed Bangladesh Inc. (a wholly owned subsidiary of the Congress Party of New Delhi) with Sheikh Hasina as its CEO and Sonia Gandhi the Chairperson and Manmohan Singh the DMD of this new commercial enterprise. Security for its local offices in Dhaka will be provided by the Bangladesh Army (which would now have become a private security firm with its main expertise in peace keeping operations!), the police and the BGB with the Commanding Officers of these organizations being gifted a horse on their retirement.
 
It seems there is an organized and concerted effort to prevent US oil and gas companies from investing in Bangladesh with Prof. Anu Muhammad and the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports leading this selective campaign. Does this predicate the waning of US influence on this country and the filling up of the resulting vacuum by India and Russia?

1. In post# 01, it is said that Petrobangla has already inked an initial agreement with ConocoPhillips in last October. But Myanmar has objected to Petrobangla's planned signing of a production-sharing deal with US oil giant ConocoPhillips. So why are you saying that there is an organized and concerted effort to prevent US oil and gas companies from investing in Bangladesh? Here it sees that BD is willing to work with ConocoPhillips but the problem is Myanmer.

Myanmar’s objection to Petrobangla's planned signing of a production-sharing deal with US oil giant ConocoPhillips is merely an adjunct to this negative campaign against US companies in Bangladesh. The thinking inside Myanmar is probably along the line that since Bangladesh apparently does not want American companies to explore for gas in the Bay of Bengal there is no harm if we object to any agreement between Petrobangla and ConocoPhillips.

2. How Myanmar's objection to Petrobangla is an adjunct to the negative campaign against US companies in Bangladesh? I mean if BD is willing to deal with US company (it is said that the objection from the neighbouring country came at a time when the government completed all necessary formalities with ConocoPhillips before signing the PSC for oil and gas exploration in deep-water offshore gas blocks in the Bay of Bengal) then how Myanmar's objection can wane US influence in Bangladesh.

Although Bangladesh is now the third largest exporter of RMG to the United States many of the companies now operating in this country are actually owned by Indians. The BGMEA president has recently suggested providing further incentives and inducements for Indians to be involved in our RMG industry and new agreements may be signed in this regard during Prime Minister Manmohan Singh's visit to Bangladesh in February. The sudden outbreak of violence in the CEPZ targeting Korean and Japanese companies may be an attempt by external forces to push out (other) foreign competitors from Bangladesh. The Indians have already taken a large stake in the telecommunications sector (at knock down prices) and it is even rumored that RAW has a local office operating from inside the DGFI HQ in Mirpur Cantonment. In the meantime steady progress is being made to provide free transit facilities to India and several agreements have been signed in the last two months to this end. All that needs to be done is for our country to be renamed Bangladesh Inc. (a wholly owned subsidiary of the Congress Party of New Delhi) with Sheikh Hasina as its CEO and Sonia Gandhi the Chairperson and Manmohan Singh the DMD of this new commercial enterprise. Security for its local offices in Dhaka will be provided by the Bangladesh Army (which would now have become a private security firm with its main expertise in peace keeping operations!), the police and the BGB with the Commanding Officers of these organizations being gifted a horse on their retirement.

Very sad to hear such news. :frown:
 
Last edited:
Myanmar Navy is pretty decent in size. I am not sure about the ages of the ships, but they have a lot more ships then we do.

We need more Naval power to check these guys.
 
1. In post# 01, it is said that Petrobangla has already inked an initial agreement with ConocoPhillips in last October. But Myanmar has objected to Petrobangla's planned signing of a production-sharing deal with US oil giant ConocoPhillips. So why are you saying that there is an organized and concerted effort to prevent US oil and gas companies from investing in Bangladesh? Here it sees that BD is willing to work with ConocoPhillips but the problem is Myanmer.

Who do you think is behind Anu Muhammad? It is the AL and India. The AL is appearing to comply with the US but behind the scenes they are doing something else. Do not be surprised if India is pushing Myanmar to protest the deal. The AL did the same thing in their last tenure in government in 1996-2001. Have you not heard that the gas and oil sector is now being handed over to the Russians and Indians? There have been several threads on this already.

2. How Myanmar's objection to Petrobangla is an adjunct to the negative campaign against US companies in Bangladesh? I mean if BD is willing to deal with US company (it is said that the objection from the neighbouring country came at a time when the government completed all necessary formalities with ConocoPhillips before signing the PSC for oil and gas exploration in deep-water offshore gas blocks in the Bay of Bengal) then how Myanmar's objection can wane US influence in Bangladesh.

I have people closely involved in the ConocoPhillips deal and they say nothing has happened in 2 years. The AL is pretending everything is moving forward but nothing is happening. Myanmar intervention is an Indian ploy. India also has claims on ten of our exploration blocks so if ConocoPhillips is pushed out they will takeover those blocks and BD will be left with nothing.
 
Four global state-owned cos seek gas tie-ups with Bapex

Top state-owned global oil giants have lined up to tie up with Bapex to develop four Bangladeshi gas fields and explore hydrocarbon in the Chittagong Hill Tracts region, officials said Saturday.

The firms -- Chinese Cnooc and Sinopac Shingli, Thai PTTEP and Russian Gazprom -are interested to strike joint venture deals with the lone Bangladeshi state-owned exploration company to make a foothold in the country.

"Bapex made the invitation to the companies and they have already responded positively as they are convinced of the prospects of the four gas fields and potentials for new discoveries in the CHT," an official said.

Bapex officials said some executives of the companies have visited the country and held primary negotiations. "We hope we can conclude talks as soon as possible and start exploration and development work," he said.

The four companies are cash rich and won't be shy of exploring gas in the restive CHT region where a slow-burning insurgency left 2,500 people killed since 1980s, another official said.

Although the government has signed a peace treaty with the main rebel group in 1997, private energy firms scouring oil and gas in the country have largely stayed out of the region for security region.

"Unlike the private firms, the state-owned companies won't be sensitive to conducting exploration in the CHT. We can avoid time-consuming tender procedures if we strike deals with them," the official added.

Top officials from Russian Gazprom and Thai PTTEP have recently visited the country and held talks with Petrobangla and state-owned Bapex over scopes to strike joint venture deals.

The visit follows after Bapex formally sent invitation letters to the state- owned firms to develop and produce natural gas from four potential onshore gas structures and the CHT region.

Malaysia's state-owned Petronas, India's Oil and Natural Gas Corporation (ONGC), Chinese CNPC are also among the firms invited for the joint venture talks.

The four gas fields that Bapex put up for joint venture deals are Kotia, Joldi, Kafalong, Shitapara - all situated in gas block number 22 in greater Chittagong region. It spans over 13,900 square kilometers area.

Officials said the planned tie-ups will strengthen the country's sole oil and gas exploration firm, which produces only 58 million cubic feet of gas daily (mmcfd) contributing less than three per cent of the national gas output.

In the past two decades since its inception in 1989, Bapex could produce gas from only three fields. Its exploration activities largely remained frozen earlier last decade due to lack of rigs.

Bapex has now only one joint venture with Canadian Niko Resources. Together, they developed Feni gas field but production remained suspended because of payment dispute. They also made some drilling work in Chhatak.

Four global state-owned cos seek gas tie-ups with Bapex

Why no US companies invited to participate in this deal? There is even an Indian company making a bid.
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Pakistan Defence Latest Posts

Back
Top Bottom