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Offshore Exploration of Oil, Gas

'Make public production sharing contract model'

Staff Correspondent
Expressing doubts about the transparency in recently approved Production Sharing Contract (PSC) model for offshore exploration of oil and gas, academics yesterday called on the government to make it public and consult local experts before inviting tenders from foreign companies.
The people would not take any responsibility for the contracts if signed with foreign companies without the PSC model being made public, they said at a press conference organised by the Campaign for Citizens' Right to Information at the National Press Club.
Prof M Shamsul Alam of Chittagong University of Engineering and Technology, Prof Anu Muhammad of Jahangirnagar University, Prof Dr Hossain Mansur of Dhaka University and Campaign for Citizens' Right to Information Member Secretary Zakir Hossain were present at the press confer-
Referring to the recent remarks of Chief Adviser's Special Assistant
for Energy Ministry Prof M Tamim that allocation of 28 gas-oil blocks will be completed by October, the academics said such remarks suggest he still sticks to his previous position in favour of gas export.
The caretaker government, which took over only for a short period, should not take any policy decision, they said, adding that its important task is to frame a guideline for the future development of power and energy sector and reveal corruption in the gas deals signed during the previous government.
Prof M Tamim took a strong position in favour of gas export in 2001, claiming that there is a huge gas reserve in the country, but his own words that gas crisis may turn serious by 2011 proves his previous claim wrong, Prof Shamsul Alam said in a written statement.
Each previous PSC model had provision allowing the export of LNG (liquid natural gas), he said and demanded incorporation of a provision banning export of gas or oil in any form into the PSC model.
"In the latest PSC model, the highest price of each unit gas has
been fixed at $ 4.7, but the investor will pay corporate tax. It is not clear who is going to benefit from such arrangement. It is also not clear if tax holiday is applicable in the case of foreign investment," hesuid.
Prof Anu Muhammad said there is a huge resource potential of gas and oil in the Bay of Bengal. The people of Bangladesh, therefore, need to keep a close watch so that none can deceive them in collusion with die local vested quarters.
He alleged that there are some vested quarters in die government agencies who act as agents of foreign companies. "We must explore and extract gas, but not for the benefit of the foreign companies, " he added.
The present government should focus on digging out corruption in the previous gas deals instead of considering the foreign investments, he said.
Prof Hossain Mansur said the government should never sign any contracts on the gas or oil fields having the highest reserve. "We should develop our expertise and develop such fields," he added.