The New Nation - Internet Edition

Staff Reporter

Petrobangla is sticking to a May deadline for international oil firms to submit documents for offshore gas bidding because it is keen to press on with efforts to boost output, a senior official said.

The move comes yesterday despite requests by a number of international companies to extend the time limit for submitting the documents, which closes in the first week of May 2008, as per schedule.

"We conveyed to all our international bidders our inability as we are keen to begin exploration by October 2008, to avoid any delay in the total package of gas drilling in 28 offshore blocks," said a Petrobangla official.

Before the bidding, the state owned Petrobangla organised a two-day presentation on the energy sector attended by representatives of 28 international oil companies (IOCs), which ended on Monday in Dhaka.

Bangladesh, with 13.54 TCF of proven and recoverable gas reserves, is facing at least 100 million cubic feet of gas (mmcf) shortages a day.

The country now supplies up to 1,738 mmcf of gas daily against a daily demand of 1,833 mmcf, officials said.

"The demand is growing fast and we will face a crisis by the 2011. Before that, we must add more gas to ensure at least 7 percent economic growth," Petrobangla Charmin Jalal Ahmed said at a news conference.

Officials said the firms that bought documents and held talks included BP Plc (BP.L: Quote, Profile, Research), Cairn Energy (CNE.L: Quote, Profile, Research), Chevron (CVX.N: Quote, Profile, Research) and ConcoPhillips (COP.N: Quote, Profile, Research), China's CNPC International, Japan's Nippon Oil Exploration, India's ONGC Videsh and Indian Oil Corporation, and Total of France.