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Exploration okayed
FROM PAGE 1
countries for the first time. We have to submit our claims on maritime boundary to the United Nations by July 2011."
She said a cell has been created in the foreign ministry for making necessary preparation in this regard.
"We believe we can resolve the disputes through negotiations with our neighbouring nations," the foreign minister added.
An official at the energy ministry told reporters that Tullow, which has been awarded a shallow water block, would get four years to explore its block and must produce oil or gas within eight years of signing of a Production Sharing Contract (PSC) with Petroban gla.
Conoco, which was awarded deep sea blocks, will get five years for exploration and nine years to produce hydrocarbon.
The approvals stemmed from the offshore oil and gas block bidding in May last year. Seven oil companies submitted proposals for 15 blocks out of28 during last year's bidding.
Conoco Phillips offered to invest $442.63 million under four PSCs for eight blocks, while Tullow proposed to invest $50 million in a single block. TUllow now produces 100 million cubic feet gas a day at Bhangura gas field.
Although Conoco was responsive in all eight blocks, the government did not award it all the blocks following a policy that discourages awarding more than two blocks to a company.
On May 14, the vice president of Conoco in a letter informed the government that most of the blocks it chose overlap the maritime areas claimed by Myanmar.
He suggested that at first, the government might award the blocks that do not overlap disputed territories.
Petrobangla will negotiate with the two companies for signing separate PSCs.
The model PSC in this regard was finalised last year following consultation with PSC experts Dr Kamal Hossain
and Dr Pedor van Meaurs. The PSC suggests following Bangladesh Arbitration Act 2001 for solving disputes between the PSC signatories, instead of going to an international court.
Although Bangladesh faces increasing gas crisis, it has never explored its deep sea areas for oil or gas exploration before. But India discovered a staggering 100 trillion cubic feet (TCF) gas reserve in the Bay while Myanmar 7 tcf.
Meanwhile, the cabinet purchase committee yesterday approved import of three lakh tonnes of urea fertiliser worth Tk 607 crore.