The New Nation - Internet Edition

UNB, Dhaka

After receiving very poor response, the Petrobangla is likely to invite fresh international bids for hydrocarbon exploration in the country's maritime territory, official sources said.

According to the sources, in the recently held 3rd round international bidding, only seven IOCs submitted their offers for 15 out of the 28 blocks -- 8 shallow-water blocks and 20 deep-water blocks. There was no offer for 13 blocks.

After evaluation, it was found that only two international companies' offers are responsive for 9 blocks. Of these, the US-based ConocoPhilip alone came out as responsive for 8 blocks -- 10, 11, 12, 15, 16, 17, 20 and 21, while Tullow emerged as responsive bidder for Block 5.

The bidding took place on May 7 in Dhaka. Petrobangla, however, was not able to submit its evaluation report to the Energy Ministry. The Petyrobangla had a plan to sign contracts with the selected IOCs and make the final award by September 2008.

After such poor participation by the IOCs, the Petrobangla top officials are trying to figure out the reasons for the poor response with most oil majors opting out from submitting their bids.

They feel that there were a number of reasons behind the poor response. Firstly, when Bangladesh invited the 3rd round bids, at the same time neighbouring Myanmar and India also invited tenders and most of the oil majors were busy submitting bids against the Indian tender.

Secondly, Bangladesh did not make adequate campaign abroad. Particularly, there was no international road show outside the country. Normally, any country wishing to invite such bids organizes road show in some important cities like Singapore, Dubai, Paris, London and New York.

Thirdly, Bangladesh had not acquired adequate seismic data on the hydrocarbon blocks for which it invited tenders. This ultimately failed to attract major oil companies.