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15 firms show interest in 3rd round offshore bidding

Star Business Report
So far 15 companies have shown their interest to bid in the third round offshore bidding for exploring gas in the Bay of Bengal.
"We sold 15 promotional packages until March 18 each at US$7,500 for the third round of bidding in the offshore areas,’’ said Jalal Ahmed, chair man of Bangladesh Oil, Gas and Mineral Corporation (Petrobangla).
The Petrobangla also sold 22 information packages to the same number of companies each at $100, he said speaking at a press conference in Dhaka yesterday.
The conference was organised to present the latest development of the third round offshore bidding process.
Earlier from February 15 to 19, the Petrobangla floated international tender in eight national English and Bengali dailies inviting interested companies to participate in the third bidding titled "Offshore Bidding Round-2008”.
As per the tender schedule, Petrobangla on February 24 started selling of schedules and it will receive the bids from the intended companies until May 7, Jalal said, adding that on the same day the tender will be opened in presence of the bidders and government offi-
cials concerned.
He said the Petrobangla will organise a road show in the city's Pan Pacific Sonargaon Hotel on this March 30 to attract more bidders for participatingin the tender.
"After completion of the bidding process, a PSC (Pro-dui tion Sharing Contract) agreement would be signed with the suitable oil exploring companies in October this year," Jalal hoped.
Replying to queries, Major (rtd) Muqtadir Ali, director (PSC) of Petrobangla, said it takes nine years for gas production from deepwater and eight years from shallow water in the offshore areas.
He, referring the tender offers, said per-unit gas (1000 cubic feet) will cost $4.5, which is similar to the price offered by neighbouring Myanmar and India in their recent biddings. India and Myanmar offer $4.5 to 5.0 for per unit gas, he said.
Maqbul-E-Elahi, director (Mines and Minerals) of Petrobangla, said there is insurance coverage in case of any blow out like Magurchhara.
He also said there is no chance of environmental hazard in the offshore bidding, as the environmental issues have been addressed very seriously during the gas exploration process in those areas.