Baku, Azerbaijan, Feb. 15
By Maksim Tsurkov - Trend:
Bangladesh Petroleum Exploration and Production Company Ltd. (Bapex, a subsidiary of PetroBangla, the state-owned national oil company of Bangladesh) has taken the initiative to work jointly with Azerbaijan’s state oil company SOCAR for exploring viable oil and gas fields across Bangladesh, the Dhaka Tribune newspaper reported Feb. 15.
The report with reference to a senior Bapex official said that Bangladesh is set to sign an agreement with Azerbaijan within this year.
“Sources from Bapex revealed that SOCAR recently answered a call for tender for conducting drilling operations at natural gas wells in Bangladesh,” said the report.
Prices put forth by the firm have been taken into consideration by Bapex, the report noted. If Bapex rents a rig for oil and gas exploration, it will cost around $10 million, a source in PetroBangla said.
“But Bapex already owns five rigs and using them will significantly lower the total cost,” the report noted. “SOCAR has set their price for oil and gas extraction at $11 million.”
“Russian company Gazprom is currently drilling 15 natural gas wells across Bangladesh,” said the report. “The firm set their prices at around $18 million, which is a lot more than SOCAR. Gazprom also has a habit of outsourcing their work to another firm named Arial.”
Addressing the matter, a senior PetroBangla official said that SOCAR’s price for oil and gas extraction is comparatively low.
A discussion is going on between SOCAR and Bapex regarding what kind of support SOCAR can provide to Bangladesh, according to the official.
“A nine-member delegation has already visited Azerbaijan to discuss the deal,” the official said.
The Bangladeshi delegation, led by Senior Secretary of Legislative and Parliamentary Affairs Mohammad Shahidul Haque, visited Azerbaijan on Jan. 26, according to the report.
Energy Secretary Nazimuddin Chowdhury and Bapex Managing Director Naushad Islam were part of the team among other senior officials, the report noted.
Bapex sources added that the deal between Bangladesh and Azerbaijan will be signed by the abovementioned state-owned companies.
According to sources, a delegation from Azerbaijan will visit Bangladesh this year, and the oil and gas exploration deal will be finalized through detailed discussions.