The New Nation - Internet Edition

ONLY seven international oil companies (IOCs) have submitted bids for 15 offshore blocks, though 24 companies had earlier purchased promotional and data packages. No tenders were submitted for 13 blocks. Petrobangla floated international tenders in mid-February inviting bids from local and foreign companies. Only one bid has been submitted for each of about half a dozen blocks. For each of the remaining blocks 2 to 4 papers have been submitted. Block No. 10 received as much as four proposals. No bids were submitted for blocks on which India and Myanmar have also made claims. The government has set October 2008 for signing contracts after completion of evaluation and approval from the concerned authorities.

Before having final deals the legal status, work experiences and competence of the bidders must be ascertained. No work orders should be given to IOCs that do not have the requisite qualification. This is a must to avoid repetition of the blunders that were made at Magurchhara and Tengratilla gas fields. In a situation of fast depleting gas reserves on one side and high demand from industries and the power sector on the other, the process of gas exploration needs to be expedited. The situation may pressure the government to have hasty business deals with parties. But such deals, if done without careful evaluation, may prove to be counter-productive. If bidders are found incompetent, the authority must cancel the bidding.

More than two-thirds of the companies that purchased tender forms refrained from submitting bids. International companies like Niko, Chevron and Unocal are not in the bidding. It may be indicative of their unwillingness to commit investment.

The policy and decision makers thus must not act hastily in reaching deals.