deep-water blocks development,” ExxonMobil new opportunities manager Janathan Wilson wrote to State Minister for Power and Energy Nasrul Hamid recently.
He said a successful development offers the chance of saving up to $3 billion per year to a long term LNG contract.
Nasrul Hamid said. “We are working to form a high-powered committee over the ExxonMobil proposal to negotiate with them.”
He said that ExxonMobil proposed to invest $30 billion with investment of $100 million for each well. “So, they want to sign a non-binding Memorandum of Understanding (MoU) immediately.”
The state minister added that the US giant proposed to relinquish blocks and will allow others to work after the 2D seismic survey.
The power and energy ministry will go ahead after receiving final approval from the government’s high-ups.
According to the ExxonMobil proposal, it seeks to sign the MoU prior to commencing negotiation, officials confirmed.
“Once an MoU has been signed, we will be ready to progress negotiations, which I presume will be via the negotiation committee,” Janathan Wilson said.
ExxonMobil proposed to start the 2D seismic survey in the coming dry season in November, the proposal said.
According to the officials concerned, the government will negotiate with ExxonMobil’s proposed $30 billion investment proposal as per the latest approved model offshore production sharing contract (PSC).
“We have received 10 proposals from international oil companies (IOC’s) including ExxonMobil. The ministry will negotiate the upper limit and lower limit of oil tariff with ExxonMobil as per the model PSC set by the cabinet,” an official told the daily sun on the condition of anonymity.
The official said, “The proposal of ExxonMobil is lucrative.”
The cabinet approved a draft Bangladesh offshore model Production Sharing Contract (PSC) 2023 on July 26 to explore oil and gas in the Bay of Bengal.
State Minister for Power and Energy Nasrul Hamid termed the PSC as “one of the best three PSCs in the world.” He said it accommodates all of the factors including competitive prices, tax, and sharing.
He said, “The international oil companies have received messages regarding the lucrative PSC from us.”
The hydrocarbon price is set at 10 percent of three months of average Brent crude prices.
[source: Daily Sun]
