Petrobangla to float 3rd bidding without seismic data

Petrobangla, the state oil and gas authority, is going to float the 3rd round bidding for some 27 shallow and deep water blocks in the Bay of Bengal very soon without acquiring necessary seismic data on those acreages, informed sources said.

But any hurried move to call the bid without having 'speculative' seismic data on the new deep water blocks-some 20 of them-might result in a very low response from the international oil companies (IOCs).

Industry sources feared that large IOCs or oil majors are likely to stay away from the bidding because there will be no technical basis upon which to evaluate these new blocks in the Bay.

They pointed out that award of blocks without data might bring in smaller companies which in turn will conduct localised seismic in their own acreages only.

Due to such localised seismic survey, no regional basin-wide data will be acquired, resulting in an incomplete understanding of the petroleum system and regional geology, the sources observed. It is feared that absence of elaborate seismic data will result in Bangladesh being ranked low by the IOCs as compared with other investment opportunities elsewhere, where there is data. But if 'speculative' seismic data can be made available prior to the bid round, there would be high level response from the IOCs, the sources pointed out.

According to industry analysts, costs of drilling in deep water is in the order of US$ 50+ million per well which typically means that only the more substantial oil companies or oil majors can explore in such water depths.

With elaborate data available, the bid round would be more competitive, ensuring participation of several global oil majors which are likely to come up with drilling commitments. But most importantly, the sources observed, a thorough seismic survey of all these new deep water blocks would give the authorities a deeper understanding of the geological and petroleum system of the area.

Moreover, armed with all necessary seismic data, the authorities can delineate the blocks to be offered and optimise gains in fiscal terms.

In worldwide terms, availability of seismic data ahead of any block offering is viewed as a prerequisite, if the bidding is to have any chance of success.