The New Nation - Internet Edition

Staff Reporter

A group of academics yesterday said the caretaker government must suspend the floating of international tender for oil and gas exploration, as it had no authority to do so.

They recommended the government to use BAPEX, the state body for exploration and extraction of mineral resources by giving all necessary assistance and seismic support to it.

They said this at a press conference at the Institute of Engineers, Bangladesh, organised by professors of economics, geology, international relations and sociology from Dhaka, Chittagong and Jahanginagar universities. Dhaka University economics Prof MM Akash read out the recommendations.

The statement said, "As the oil and gas reserves under the sea are people's property and under the prevailing state of emergency people's fundamental rights remain suspended, the activities of leasing out people's property to foreigners should be suspended."

The statement, made on behalf of the civil society by academics worried about the leasing out of national oil and gas reserves, suggested reformulating policy giving highest priority to internal use of the country's mineral resources.

"A national institution will have to be appointed for all necessary surveys before signing any agreement with foreign companies," Prof Akash stated.

He said, "If necessary, the national institution BAPEX has to be restructured and be given all necessary assistance, financial and otherwise, for seismic surveys."

"Every investment agreement will have to be meticulously reviewed by a committee formed with experts in the field," the recommendations said.

In the written statement the professor mentioned the recent floating of international tender by the caretaker government that sought bids by February 15 for oil and gas exploration in the Bay of Bengal.

At the current rate, he stated, all 28 blocks in the Bay would be allocated under production sharing contracts (PSCs) by October this year.

Jahangirnagar University economics professor Anu Muhammad said, "Extraction of each cubic foot of gas costs Tk 25. We buy this gas from BAPEX at Tk 7. We have to buy the same gas from foreign company at Tk 250 to Tk 300."

Prof Anu said that the task of exploration and extraction of gas must therefore be allotted to a national institution. "The government can fix a price at around Tk 30 for BAPEX to sell gas," said Prof Anu.

Demanding that energy exports from Bangladesh be stopped, he said, "If agreements are signed under PSCs it will endanger our energy resources."

Economics professor at Dhaka University Abul Barakat said the government was putting the energy interests of others before our own energy security.

"Oil and gas belong to the people. How was a tender floated without consulting the people?" he asked, calling for the cancellation of the tender.

DU sociology professor Saad Uddin said, "An unbearable situation has been created concerning our gas fields as unequal agreements were signed earlier."

"This time again a tender has been floated without taking people's opinion."

Dhaka University physics professor Ajay Roy, economics professor Abu Ahmed, international relations professor Akmal Hossain, geology professors Hossain Mansur and Badrul Imam, Jahangirnagar University geology professor Khalilur Rahman, Chittagong University economics professor Moinul Islam and dean of the Engineering Institute of Chittagong University of Engineering and Technology M Shamsul Islam were present at the press conference.