(lie government is likely to initial a contract on Monday with two foreign companies — Holland Sea Search of the Netherlands and Cairn plc of Scotland — to explore gas and oil in the Chittagong. Chittagong Hill Tracts and Fcnl regions

Representatives of the two companies are expected to arrive in the-capita) on Saturday as part of a high-level British delegation, official sources said

' Two other British oil giants — British Gas Company which signed a memorandum of understanding IMOU) with the government and Lasino plc. a leading qil and gas exploration company, are also sending their representatives, with the

delegation.

Calm plc and the Holland Sea Search are the only foreign companies to get government approval in the last two decades to explore gas and oil in the Bay off the coast of Cox's Bazar and Sandwlp. Identified as Block No 16. The approval was given on May 5 last.

Since then, the companies had been negotiating with Petrobangla on Block 15 — which covers the Hill Tracts. Chittagong and Feni regions.

The companies had submitted their production sharing contract (PSC)’for Block 15 to Petrobangla. Sources said, the PSC was similar to the earlier PSC for Block 16 barring a few changes In some clauses.

As per the Hbt. lor Block 15. Cairn plc jind the Holland Sea Search would develop the Semutang gas field in the Hill Tracts and two gas fields in Feni.

For the Semutang gas field, the companies proposed to extract gas and supply the same to the "KarnaphuH Fertiliser Company (KAFCO) through a 25-km pipeline

Thyy further proposed to supply gas to the national grid through the Chittagong-Bakh rabad line.

The Semutang field' has an estimated gas reserve of around one trilhon cubic feet while Petrobangla is already developing the Feni-2 field to supply 20 to 25 million cubic feet to KAFCO.

The British Gas Company had submitted its PSC for Block Nos 9 and 10 covering-the Noakhall and Comilla regions

Lasino plc Is keen about ex ptoration around the Cox's Bazar region beside Block 16. sources said adding, the company Is yet to sign a MOU

Ever since the Energy Ministry organised a round table meeting to attract international oil companies at Houston. Texas in the USA in September 1992 under the auspices of the World Bank, over two dozen companies from the United States. Canada. Britain, France and other European countries signed MOUs with the government.