Bangladesh Petroleum Exploration and Production Company (Bapex) is likely to sign contract with a Chinese company to procure a new drilling rig to expedite its hydrocarbon exploration programme across the country'.

According to‘official sources, a Chinese company - Superstructure - has been selected to supply the drilling rig within one and a half year at a cost ofTk 200 crore plus.

The state oil and gas exploration company has already completed tender procedure to purchase the ng.

‘Bapex has completed the bidding process and also issued a letter of intent to the Chinese ng supplier,’ said Petrobangla Chairman Jalal Ahmed.

Petrobangla is the state hydrocarbon corporation holding the Bapex and other state-owned oil and gas production and distribution companies.

lalal said the Bapex is going to receive a performance guarantee (PG) from the Chinese supplier before signing the contract in January next.

The proposed drilling rig and its associated equipment will come from Europe and

USA manufacturers.

As per the proposed contract, the Chinese company will supply the new drilling rig by 18 months from the signing of the agreement. This means the Bapex will receive the rig by 2010.

At present, Bapex has got two old rigs -one 22-year-old and another 25-year-old But both the rigs have lost their performance efficiencies.

Jalal said after procuring the new rig. the Bapex would be able to expedite its hydrocarbon exploration across the country.

“Now it takes six months for Bapex to conduct a drilling. But after having the new rig, the time will be reduced to four months," the Petrobangla chief told UNB.

He said Bapex has a plan to procure a work-over rig next year for use in the already drilled wells for repair works.

The caretaker government has moved to strengthen the Bapex and approved a sevenyear plan on hydrocarbon exploration.

A fund of Tk 3,200 crore has been allocated to Bapex to run the exploration work. Of the amount, Tk 900 crore will be spent in next three years under different projects.