The New Nation - Internet Edition

UNB, Dhaka

The Energy Ministry is set to send the 3rd round gas block international bidding documents to the Cabinet for approval.

"We've received the Law Ministry's vetting and now we'll send the documents to the Cabinet within a day or two," Energy Secretary Mohammad Mohsin told UNB.

As part of the move to invite bidding, the Energy Division last Monday held an inter-ministerial meeting to give the finishing touch to the bidding documents.

The move was initiated by the previous BNP-led alliance government about two years ago. But it was stalled due to various reasons.

Mohsin said they have plan to float international tenders by December 31, 2007 and complete the process of awarding contract by August 2008.

"We're actually trying to expedite the move in order to utilize the next dry season when work on exploration of gas is easy to start … That's why we have targeted to complete the bidding by August and start exploration as early as possible."

The official sources said the government has earmarked 28 new gas blocks in the maritime territory for exploration in shallow and deep sea. Each of the blocks will have an area from 2,000 to 7,000Skm.

Officials said the 3rd round bidding will have little scope for negotiation. "We will want everything done on the basis of the merit of the offers," said the official preferring anonymity. A model production sharing contract (PSC) was prepared for the 3rd round bidding which will be the main basis for the international tender.

As per new PSC, Petrobangla will always have a stake in every block along with the selected bidder.

The 1st round international bidding took place in 1993-94 in 23 onshore and offshore gas blocks while the second round bidding was held in 1997-1998.