The New Nation - Internet Edition

UNB, Dhaka

Documents for the third-round bidding for gas blocks now await Cabinet nod as the Energy Division has recently sent up those instruments of negotiations for endorsement.

The Energy Ministry sent the international bidding documents recently after completion of the necessary vetting by the Law Ministry and the National Board of Revenue.

The Energy Division also held an inter-ministerial meeting before sending the documents to the Cabinet Division.

According to official sources, if the Council of Advisors approves the bidding documents, Petrobangla, the national hydrocarbon agency, will invite international tender for exploration of hydrocarbons in the country's maritime territory. The sources said the Government has earmarked 28 new gas blocks in the maritime belt for exploration in shallow and deep-sea zones.

Each of the blocks will have an area of 2,000 to 7,000Skm.

Officials said the 3rd-round bidding would have little scope for negotiation.

"We will want everything done on the basis of the merit of the offers," said one official, preferring anonymity.

A model production-sharing contract (PSC) has been prepared for this latest round of 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 move for inviting 3rd-round international bidding was initiated by the previous BNP-led alliance government about two years ago. But it stalled for various reasons.

Energy Secretary Mohammad Mohsin had said his ministry has a plan to float the tender by first month of the new year and complete the process of awarding contract by August 2008.